The Minister for Justice refused to comment on claims by Fine Gael that a settlement of £2 million was agreed over the six-year delay in the delivery of a judgement by the Chief Justice.

Mr O'Donoghue said it would be inappropriate to comment on the conduct of an individual court case.

He told Fine Gael's justice spokesman, Mr Jim Higgins, the case, Flannery v Ireland, was referred to the European Commission on Human Rights in November 1995.

It was subsequently withdrawn following an agreement by the parties and, "as it has been referred to an arbitrator, it would be in appropriate for me to comment further".

Mr Higgins demanded to know why the taxpayer should be "saddled with a bill of £2 million because a judge failed to perform his job and deliver a judgement?

Why had the State accepted responsibility for the failure of the Chief Justice to perform his function as a judge and give a judgement?"

He asked if the judiciary was independent, why the judge should not be responsible for paying the bill.

Mr O'Donoghue said he "could not possibly join in such criticism of the Chief Justice. It would be wrong of me to do so".

He added that to raise the issue in public before the arbitration had been concluded "could adversely compromise the State's position and give rise to higher damages".

The agreement contained a confidentiality clause, he said.

Mr Higgins wanted to know if it was the State that inserted a confidentiality clause and where this payment of £1 million or £2 million would come from.

He asked if legislation would be required to deal with this "unprecedented situation".

The Minister said he would need a waiver from the other party's solicitor if he were to divulge details relating to the agreement.