Kerry Group paid Labour Party conference bills worth £24,595

The Kerry Group "picked up" two Labour Party bills in 1996. But a company spokesman said yesterday the £24,595 involved was not treated as a deductible expense for company tax purposes.

The bills were for work carried out for the Labour Party conference in 1995 by two Dublin companies, Aidan Meade Audio Visual Supplies (£12,495), and Goodson Print (£12,100).

Invoices were sent to the Kerry Group. The spokesman said he had not yet established if VAT rebates had been claimed on the invoices.

"It appears to be the only occasion that I have located that it happened. I am confident it is the only time the Labour Party asked us to do it."

The Revenue Commissioners have written to Fine Gael and the Labour Party following media coverage of the political parties using "pick-me-ups" as a form of fund-raising.

Mr Ray Kavanagh, general secretary of the Labour Party, said the Kerry Group payment was the only instance found following a study of the party's books, and it would be reported to the Revenue. "There is no Revenue issue for the Labour Party," he said.

A Fine Gael spokesman said the party was checking its books and would bring any matter it thought of interest to the Revenue's attention. No instance of using pick-me-ups had yet been found, the spokesman said, though the party believed it had used them in the past.

Last week, Fianna Fail invited the Revenue to inquire into its use of pick-me-ups to see if there were Revenue issues involved. The use of pick-me-ups - whereby donors could contribute discreetly to political parties - came to public attention after it was disclosed that a £30,000 donation from Fitzwilton to Fianna Fail in 1989 had been treated in the Fitzwilton books as a business expense.

A VAT rebate had been sought on the basis of an invoice from Irish Printers. Fitzwilton has recently made a £6,000 payment to the Revenue to settle the matter.

The treasurer with the Progressive Democrats, Mr Paul Mackay, said his party had not received a letter from the Revenue and as far as he knew, the party did not use pick-me-ups.

A Democratic Left spokesman said it had not received a letter from the Revenue. The party received very few corporate donations, he said.