The Tánaiste, Ms Harney, told the Dáil she accepted the Taoiseach's assurances about Mr Ray Burke and agreed to his appointment as minister because "I wanted to base the new government on a foundation of trust, co-operation and partnership".
She told the debate on the Flood report that "in a previous coalition with Fianna Fáil the Progressive Democrats had been branded, whether fairly or unfairly, as a party that was totally unreasonable and too quick in forcing resignations and blocking appointments".
Ms Harney, who said the tribunal of inquiry had now become the nuclear deterrent in the "war against corruption", said she was aware various allegations "had been made against Mr Burke and I sought both information and assurance in relation to these from Bertie Ahern".
Her "specific concerns related to payments which Mr Burke was alleged to have received. I wanted to know what monies Ray Burke had received and whether or not he had done anything improper in return for those monies".
The Taoiseach told her "he had fully investigated the matter. He told me that Ray Burke had received £30,000 from Mr James Gogarty/JMSE, that Mr Burke had retained £20,000 for his election campaign in Dublin North and that he had forwarded £10,000 to Fianna Fáil headquarters." Essentially, she had "two choices as leader of the Progressive Democrats. "Either I could accept the assurances given to me by Bertie Ahern and agree to the appointment of Ray Burke as a government minister or I could refuse to accept the assurances given to me by Bertie Ahern and refuse to accept the appointment of Mr Burke as minister."
She accepted because she was "determined to show that the Progressive Democrats could work successfully in a coalition government. I recognised from the outset that the issue of trust between the party leaders was absolutely central to the success of any coalition. And that is why I was willing to take Bertie Ahern on trust and to accept in good faith his assurances regarding Mr Ray Burke."
Labour's deputy leader, Mr Brendan Howlin said the reality was that the "Tánaiste's knowledge of the existence and seriousness of the allegations against Mr Burke was considerable".
He added that perhaps the Tánaiste's "conscience was troubling her anyway.
"Her recent statements that she accepted the Taoiseach's assurances on the Burke appointment do not represent her finest hour in Irish politics."
Mr Howlin said the Tánaiste told the Flood tribunal that she raised the matter with Mr Ahern and continued to discuss it until the day the government was appointed in 1997. This was important because three days earlier Mr Dermot Ahern had told the Taoiseach no payment had been made. Why did Ms Harney not "appreciate the significant of a payment claimed to have been received but denied having been made".
Mr Howlin said Ms Harney received additional information about the alleged JMSE payment "in the immediate aftermath of her connivance in his appointment".
He believed that because of a "disastrous election campaign" in 1997, she did not feel able to rise herself to action and "colluded further in the exclusion of Ray Burke's name from the original terms of the Flood tribunal".
