INTERVIEWED by Irish journalists in Lisbon yesterday about Mr Michael Lowry's resignation, the Taoiseach, Mr Bruton, said: "The first thing I'd like to say is that the law applies equally to everybody and everybody must comply fully with the law, whether it be tax law or any other legislation.
"It's an equal obligation on every citizen whether he/she be a minister, a deputy or just an ordinary citizen to comply fully with the law, and the statutory authorities are there and have full power to ensure that happens. And they will do their job fully in regard to allegations of this nature, or any other allegations."
Questioned about the impression he had given to some that there was one law for backbench TDs in opposition and different rules for ministers, Mr Bruton replied: "There is one law for everybody. Everybody must comply with the law and any wrongdoing that is suggested must be investigated properly by the law.
"What I was saying was that when someone becomes a minister they take on additional obligations. For example, the additional obligation of giving up being involved in business, the additional obligation under the ethics legislation which is heavier in the accountability it demands under a Bill recently passed by the Dail on ministers than it is on others.
"That was what I was referring to and, of course, Cabinet collective responsibility which applies to ministers and not to deputies. That was the distinction I was drawing, and I know that Deputies Ahern and O'Malley who questioned this knew exactly what I was referring to.
"There can be no hiding places for anything that's wrong in our society and there are no hiding places. The authorities have all the powers that they need to investigate any allegation fairly, to hear both sides, and to come to a decision."
Asked why, in his view, Mr Lowry had to resign, Mr Bruton said:
"Because he wasn't able in the short time available to provide the sort of answers that were necessary in regard to the questions that were raised. And he felt in fairness to himself and in fairness to those who worked in his business, in fairness to those who worked with his business, that he was entitled to take his time to provide all the answers that were necessary to the relevant authorities.
"And he came to the conclusion that he couldn't take that time and do that while continuing in office.
"The two were just incompatible in terms of the demands that they would make on him and the pressures that they would put on the Government. And for that reason he decided to resign so that he could deal with the issues that were raised in a fair and open way with the relevant authorities.
Mr Bruton was asked if he believed Mr Lowry could still be proven innocent of any impropriety.
"That's really a matter which the relevant authorities will now be making the relevant investigation to determine. Personally, as everybody knows, I have a great affection for Michael Lowry and a great belief in him. But equally I believe that Michael Lowry must, as everybody else, be in a position to co operate fully with everybody whose responsibility it is to investigate his actions from a legal point of view. And he has told me that he will do that."
Asked whether Mr Lowry could keep the matters secret on the grounds that he could not disclose to competitors his business relationship with groups such as Dunnes Stores, the Taoiseach replied:
"One of the reasons that the Revenue Commissioners have such enormous powers is that they have the job of investigating that sort of issue and deciding whether a tax liability applies and when they're doing that they don't in every case publish everybody's accounts for the benefit of their competitors.
"They will sometimes investigate with the assistance of the company concerned or occasionally without the assistance of the company. The Revenue will make an investigation. They will decide what the tax liability is.
"The tax liability must be paid, but the question of disclosure then is a matter for the person concerned to decide what they want to disclose afterwards, taking into account the implications for other people, taking into account their competitive position.
"That's the sort of decision that Michael Lowry now, as the managing director of Streamline Enterprises, will have to make. He will also have to take into account questions that will be in people's minds in his own constituency and nationally about the issue."
Asked was he torn between his duties as Taoiseach and loyalty to a friend, Mr Bruton replied:
"Not really, because I think one's duties are very clear in government. You've got to ensure that in government that not only do the highest standards actually apply but that they are seen to apply.
"And also, one has got to be very clear that one can't allow difficulties of a personal nature interfere with the day to day functioning of government because the issues that we have to deal with in government are so serious and important themselves we cannot be in a position of having any distraction which causes difficulty.
"But I have to say, as it is public knowledge, I am personally a very close friend at a human level with Michael Lowry. I feel the loss of Michael Lowry quite deeply at a personal level. I have great confidence and trust in him at a personal level. But equally I believe that he's the same as anybody else in terms of the law."
Asked would he like to see the Price Waterhouse report published in view of the media reports that others might have received money from Dunnes Stores, the Taoiseach said:
"I'm not in a position to comment on the publication of the Price Waterhouse report, because I've not seen the report. I don't know what's in it, I don't know who owns it, whose property it is, so to speak, who has the right to make the decision in regard to publication.
"But one thing I do know any information that's contained in it that is relevant to somebody's tax liability, the Revenue Commissioners are entitled to get that information, should get it and must and will get it.
"And they will make the relevant decisions then in regard to compliance with the law. I am not in a position to go beyond that as to whether the report can be published or what the status of the report is. It is not a report that was commissioned for the Government or one that the Government has any control over.
"Moreover, it was, I think, prepared for a court case. The people who commissioned it have obviously got some responsibilities to exercise themselves in terms of what they publish or don't publish, but the Revenue can get all the information under existing powers either by getting the report or by getting all the information relevant from all of the people who contributed to the preparation of the report. That is unavoidable."
Mr Bruton was asked if he had seen the Price Waterhouse report.
"Not at all. I have not seen it. I was obviously given a briefing on the aspects of it as known to Michael Lowry's advisers by Michael Lowry. But he wasn't able to provide complete answers to all the questions that arise. He decided, in those circumstances that he needed to be able to do that and resigned from office in order to be able to do that."
On whether appointing his previous rival, Mr Alan Dukes, to the Cabinet to replace Mr Lowry would heal party wounds, the Taoiseach said: "It represents a recognition of talent and ability."