The Labour Party leader has accused the Minister for Finance of failing to inquire into tax evasion several years ago despite evidence that it was taking place on a massive scale.
In support of his claim, Mr Pat Rabbitte yesterday reproduced a lengthy quotation from Mr McCreevy in 1998 rubbishing the idea that tax evasion was widespread.
He said Mr McCreevy had dismissed the idea that there was large-scale evasion as a "ridiculous" and "half-cocked" notion despite clear evidence to the contrary. "He was either asleep at the wheel or did not want to delve into this area too deeply for fear of what he might find," Mr Rabbitte said.
The €900 million brought in in uncollected tax since the DIRT inquiry was the proof that Mr McCreevy had been wrong and Labour had been right on the issue."If we were guilty of anything it was that we actually underestimated the extent to which some people were prepared to go to evade tax," he said.
On RTÉ news in January 1998 Mr McCreevy said: "The sums uncovered are very small in the context of the level of tax paid each year, so I think you need to put it in context.
"It is an insult to the vast majority of taxpayers to say that tax evasion is widespread. The question of tax evasion is not a unique Irish problem, nor is the question of residents having offshore bank accounts for tax evasion a unique Irish thing as well.
"So these things should be borne in mind, rather than people going off half-cocked and making ridiculous and outlandish allegations, both against the Revenue Commissioners and against other people as well."
Mr Rabbitte said the banks and financial institutions which facilitated evasion had to bear a major share of responsibility and be made to pay the appropriate penalty.
"However, Minister McCreevy must also accept a significant share of the blame for failing to take the necessary action when firm evidence began to emerge."