The Progressive Democrats say they won't take any action to have the nomination of Mr Hugh O'Flaherty to the EIB reversed, despite Ms Liz O'Donnell's statement that the party would not oppose any Fianna Fail move to do so.
Amid continuing PD anger over the damage done to the party by the controversy, Ms O'Donnell, a Minister of State, sought yesterday to place responsibility for the nomination squarely on Fianna Fail, and to distance the PDs from it. ail was trying to avoid blame for the controversy, Ms O'Donnell described the decision as "a Fianna Fail nomination by a Fianna Fail Minister of a Fianna Fail person".
Spokesmen for the Fianna Fail and PD Cabinet Ministers both said last night the appointment would go ahead, despite the increasing bitterness between the two parties on the matter. Meanwhile the Taoiseach is likely to be asked in effect to decide whether the Oireachtas will seek to compel Mr O'Flaherty to appear before an Oireachtas committee to explain his actions in the Sheedy affair.
A Labour motion, seconded by Fine Gael, will be discussed at the Oireachtas Committee on Justice, Equality and Women's Rights next Tuesday seeking to compel the former judge to attend, should he decline to do so voluntarily. ail has a majority on the Committee , and party sources said last night that the Taoiseach would be consulted before the party's deputies and senators decided to support the efforts to compel him to attend. Ms O'Donnell's comments yesterday were made without the knowledge of the Tanaiste, but a spokesman said later that Ms Harney had no problem with what she had said. Ms O'Donnell's comments, the spokesman said, "reflected a widely held view within the party".
The remarks followed a radio interview yesterday morning in which a Fianna Fail backbencher, Mr Sean Ardagh, said he regretted the decision and thought it was wrong. Although Mr Ardagh also said he stood by the decision and did not think it should be reversed, his comments increased PD suspicion that Fianna Fail was distancing itself from a decision which had damaged the PDs considerably more than it had Fianna Fail.
Asked about Mr Ardagh's remarks, Ms O'Donnell said her party had been very unhappy with the appointment.
She added: "It now appears from various comments, including the Taoiseach's, that Fianna Fail is becoming a bit windy on this particular appointment . . .
"If it now appears that Fianna Fail has changed its mind on the wisdom of this appointment, we certainly won't stand in its way if it wants to reverse it".
A party spokesman confirmed last night that they were not now calling for the reversal of the decision but warned that they would not tolerate Fianna Fail figures expressing public ambiguity about a decision driven by that party.
Carol Coulter, Legal Affairs Correspondent, writes: Mr Denis Riordan intends to lodge papers on Monday or Tuesday next seeking an injunction preventing Mr O'Flaherty from being appointed to the European Investment Bank.