Government fury as Callely resignation eclipses Budget

The Government is furious with ex-minister of state Ivor Callely's handling of his resignation, which overshadowed yesterday'…

The Government is furious with ex-minister of state Ivor Callely's handling of his resignation, which overshadowed yesterday's Dáil debate on the Budget. Mark Hennessy, Political Correspondent, reports.

Mr Callely tendered his resignation letter to the Taoiseach shortly before 9am, only to deny he had done so "as yet" in a radio interview an hour later.

Taoiseach Bertie Ahern read out his letter of resignation to the Cabinet at a meeting that began in Government Buildings at 9.30am.

Speaking in the Dáil an hour later, Mr Ahern curtly announced he had "accepted" Mr Callely's resignation, although he omitted the tributes usually offered to departing ministers.

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The Taoiseach's refusal to allow a Dáil debate on the resignation, and Mr Callely's decision not to make a personal statement, provoked several of the angriest exchanges seen in the chamber for some years.

In a brief statement issued to the media, but not read out in the Dáil, Mr Ahern said Mr Callely had left "in the public interest and in view of the fact that the ongoing controversies made it impossible for him to effectively and productively carry out his ministerial duties".

The Tánaiste and Progressive Democrats leader, Mary Harney, said Mr Callely, who is a TD for Dublin North Central, had made "the right decision", since his departure was "inevitable" after it emerged earlier this week that John Paul Construction had paid for the painting of his house in Clontarf in the early 1990s. This disclosure followed earlier controversies about his relations with civil servants in the Department of Transport.

"I think it was inevitable and I think he has done the right thing and I wish him well. It has to be a traumatic day for himself and his family and his supporters," Ms Harney said

Although it is far from certain, it is believed the Taoiseach will not appoint a replacement for Mr Callely until after Christmas.

If he decides to keep the post in Dublin, the favourites include Dublin North's Jim Glennon, Dublin North West's Pat Carey and Mr Callely's Dublin North Central colleague, Seán Haughey.

Mr Callely's decision to appear on RTÉ's Today with Pat Kenny programme yesterday morning, and to turn up in the Dáil chamber for much of the morning, deeply angered Ministers.

They believe his interview with Pat Kenny eclipsed Minister for Finance Brian Cowen's post-Budget appearance on the same programme, while his Dáil presence spurred on the Opposition's attack on the Government.