MINISTER FOR Finance Brian Lenihan claimed in the Dáil that Labour finance spokeswoman Joan Burton had accused him of corruption and he challenged her to “repeat that outside”.

He was replying to a pre-budget debate, during which Ms Burton accused him of a “bailout of your friends in the banks”, in relation to the bank guarantee scheme.

Mr Lenihan angrily replied “there is no bailout in relation to the banks and you have now accused me of corruption on the floor of this House. How dare you. Repeat it outside.”

The row developed as Ms Burton intervened when he referred to the situation in Irish Nationwide, whose chief executive Michael Fingleton, secured a €1 million bonus payment.

Ms Burton asked if the Minister had asked Mr Fingleton to resign. “You are the decision maker,” she said. “I am not putting myself in the position of being a decision maker in this matter because Deputy Burton is well aware of the corporate governance rules that apply,” the Minister replied.

“My concerns have been fully expressed to the relevant directors of Irish Nationwide. They will raise these issues with the board and report back to me.” He said “deputies generally should conduct themselves with some degree of restraint on this matter because what is said in this House is reported around the world and legitimate criticism of the banking system is most welcome. But sensationalist commentary does this country no good abroad.”

Ms Burton said however that “an apology from you would do this country a lot of good”.

But Mr Lenihan said: “We all know where you stand in relation to the banking system last September. It wouldn’t exist now if the House had followed your advice.” Ms Burton said “we were right”, adding it was one of the worst Government decisions in the State’s history.