Ahern's statement a 'political hoax', says Kenny

Taoiseach Bertie Ahern rounded on the Opposition as they mocked him and Tánaiste Michael McDowell in the wake of their statements to the media that they would continue in Government together and amend ethics legislation.

Fine Gael leader Enda Kenny said they had created another "political hoax in new ethics legislation that makes it all okay". Labour leader Pat Rabbitte accused the Taoiseach of making "more changes in this story than a supermodel makes at a fashion show" in response to questions about his mortgage and accused the Tánaiste of settling for a "miserable fig leaf".

But dismissing the Opposition Mr Ahern said as he answered leaders' questions: "Was I at a function? Who ate the dinner, who drank the wine, who had water, who had Ballygowan? That's what I have to turn in here every day to answer."

Mr Kenny asked Mr Ahern: "Do you now share the Tánaiste's assessment in his statement today that what you did was wrong?" He added that "some people say this was all an illusion in Manchester, that it never actually happened. Given that there were only three possible dates in that period of 93/94 when the matters in questions could have taken place, have you identified yet which of the dates it was?"

Mr Ahern repeated it was "an error of judgment". Explaining the proposed Ethics Act changes, he said that views of the Standards in Public Office (SIPO) Commission would be sought on significant loans or gifts from friends and the commission will give an opinion as to whether the acceptance of a loan or gift will compromise an officeholder.

Mr Rabbitte said the Tánaiste's statement was "unbelievable and pathetic. Did you ever in your life read such patronising vainglorious nonsense - 'it would be an act of supreme moral and political folly to regard the wrongful actions of a leaker in this way. It would amount to a failing of politics and statecraft'."

Hitting out at the Taoiseach, Mr Rabbitte said: "You tell us that it [Manchester dinner] was an organised function, that you made a speech, that they were your friends. You then told us it wasn't an organised function, you didn't make a speech and you don't know who was present, apart from two people. You told the authors of the book that you bought your house for £139,000 and you told the house the other day that it was £180,000."

Mr Ahern said: "I paid £180,000 for my house. I had £150,000 of a mortgage and £30,000 of my own accounts which was put forward."

Referring to his remarks about capital gains and gift tax, Mr Ahern said: "When a policy that I had moved from a mutual into shares and, like everybody else, I was given the calculated amount and it falls due to pay capital gains tax. I paid gift tax on nothing to do with the tribunal."

Mr Rabbitte said: "The last time you told us about the mortgage it was £100,000 and it's now £150,000. You've made more changes to this story than a supermodel makes changes at a fashion show." Mr Ahern said: "I didn't say £100,000 - I'm just looking at the note of what I said last week," he said of his mortgage.

Green party leader Trevor Sargent asked the Taoiseach to "assure the House that none of the individuals who attended the dinner in Manchester and none of the individuals who contributed to your whip-rounds were seeking government contracts in the early 90s". Mr Ahern said: "I confirm that nobody either who lent me money or who was at a dinner to the best of my knowledge did anything corrupt."