The Taoiseach has publicly distanced himself from growing pressure on Mr John Ellis to resign as chairman of the Oireachtas Agriculture Committee, despite concern in Government circles that the affair could cause a political crisis.
Mr Ahern is expected to talk to Mr Ellis today for the second time in 24 hours, as Fianna Fail members of the committee prepare to meet to decide his fate this afternoon. Before Mr Ahern announced yesterday that he would meet Mr Ellis, sources said it appeared likely that the Fianna Fail TDs and Senators on the committee would decide to withdraw support from him.
However, their decision will be influenced by the party leadership, and Mr Ahern maintained his public position of neutrality on whether Mr Ellis should resign.
There is some speculation that Mr Ellis might yet resign or step aside from his position as chairman on the grounds that this would give him time to attempt to repay some of the farmers who were owed money after Mr Ellis's business, Stanlow Trading, collapsed in the late 1980s.
Mr Ellis has been at the centre of controversy since it emerged at the Moriarty tribunal last month that in 1989 he had a debt of some £240,000 written off by National Irish Bank and received £26,000 from the Fianna Fail party leader's account to defray other debts.
Mr Ahern told reporters yesterday that he met Mr Ellis earlier in the day, at the same time as the Minister for Tourism and Sport, Mr McDaid, and another Fianna Fail committee member, Mr Billy Kelleher, were calling on Mr Ellis to resign.
The Taoiseach gave no indication as to whether he thought Mr Ellis should stay or go, saying: "I can tell you that he [Mr Ellis] is anxious to talk to representatives of the farmers to see what it is that he can do within the limits of his resources and within the legal situation, and on the other side of Wednesday he is prepared to do that."
It is understood the Irish Farmers' Association is attempting to arrange a meeting between Mr Ellis and his farmer-creditors on Friday.
The Sligo-Leitrim TD will meet Mr Ahern, the Government Chief Whip, Mr Seamus Brennan, and the chairman of the Fianna Fail Parliamentary Party this morning. Unless Mr Ellis then announces a decision to resign or step aside, Fianna Fail members of the Agriculture Committee will meet this afternoon to decide their response to a Fine Gael motion of no confidence in Mr Ellis as chairman, to be voted on by the committee tomorrow.
The Government faces a political dilemma in the affair, as there are fears that Mr Ellis might resign his Dail seat, thus precipitating a by-election the Government might lose, if he is pushed by the party to relinquish his £10,000 per-year chairmanship.
However, if the Fine Gael motion of no confidence in him fails at tomorrow's meeting of the Agriculture Committee, Fine Gael will table a motion in the Dail calling on him to resign. That could be voted on as early as next week. Such a vote could expose serious divisions between the Government parties, as PD Minister of State Ms Liz O'Donnell has already said Mr Ellis should resign.