THE Taoiseach appealed for Mr Michael Lowry to be given time to deal with the controversy which led to his resignation as Minister for Transport, Energy and Communications.

Mr Bruton said that Mr Lowry had resigned because he needed more time than was politically available to him to deal with questions which were posed to him on his business relationship with Dunnes Stores.

"I think it is important that he should be allowed sufficient time, freed from ministerial office, to establish the full facts for the relevant authorities, and satisfy the questions that will be there in people's minds about the issue.

"Michael Lowry, like all public representatives, knows that dealing fully and comprehensively with public concerns over any issue of financial probity is vital to our system."

The Taoiseach was opening the five-hour debate approving the nomination of Mr Alan Dukes to replace Mr Lowry. He said that Mr Dukes had already served as a minister with distinction, and prior to that he had built up significant experience in EU affairs in Brussels.

Nobody was above the law, said Mr Bruton. But there was a higher responsibility on citizens who became public representatives.

"As well as abiding by the law, they must act, as public representatives, in a way that is impartial and fair, and is seen to be uninfluenced by considerations of private interest. There is a higher responsibility still on ministers.

Ministers, unlike other public representatives, make executive decisions. They administer the law as well as making it. They act in collective responsibility with other ministers and are jointly responsible for their collective decisions.

"Because of their extra responsibilities and powers, ministers, while they are ministers, have constraints imposed on them by the law that are more exacting than those imposed either on other public representatives, or on ordinary private citizens."

The distinctions between ministers and other public representatives were real, and they were very well understood by every member of the House, when he had referred to them recently, whatever some of them might have pretended.

In this State, said Mr Bruton there was not now, and never would be, a system of conviction by denunciation. Independent authorities, not rivals, nor those with an axe to grind, made judgments as to culpability. He asked members to be mindful of the privilege of the House, and not to make accusations against people outside the House.

"Refer such allegations or accusations to the relevant authorities and allow those authorities to deal with them, by due process."

Mr Bruton said Mr Lowry had been a hard-working minister, showing both commitment and vigour in carrying out his duties. Regarding his business and other interests, Deputy Lowry had exactly the same continuing responsibilities as everyone else for actions which he might have taken. His obligations were covered by the law of the land.

He said the allegations made against Mr Lowry related to matters which arose before his ministerial appointment.

"He has resigned ministerial office, so that he can have the necessary time and space to deal with these allegations. He deserves that time and space, for which he has asked.

"It would not be appropriate for me, or I suggest, for anyone in this House to deny him that time and space, and I hope that during this debate deputies will refrain from demanding the answers that Deputy Lowry has already said he is not yet in a position to give.

"For my own part, I knew nothing about the matters alleged in the Irish Independent story of November 29th until a few hours before its publication.

It is very important to stress that the full facts about these disclosures have not yet been established or placed on public record. It is not appropriate or possible for me, as Taoiseach, to form a judgment on matters on which all the facts have yet to be established by the competent authorities. It is not possible for me to act as an investigator relating to matters which are for inquiry and action, if any, by those properly constituted legal authorities.

"In this country, we live under a system of law which gives all of us, equally, the same rights and responsibilities. Deputy Lowry has exactly the same rights - no more, no less - as any other person who lives in this jurisdiction."

"Media reports have suggested that some of the allegations now made have their origins in a Price Waterhouse report commissioned by the board of Dunnes Stores. I do not know, and have no way of knowing if this is correct. I have not seen any such Price Waterhouse report, nor do I have access to possible sources of information relating to allegations.

"What I do know is that the Revenue Commissioners have wide powers to obtain any document or information which they might need for purposes of any investigation into tax irregularities. Companies and individuals have obligations under the law to provide information to the Revenue Commissioners. The Revenue Commissioners have obligations to keep certain matters confidential, but they also have obligations to make certain outcomes of their investigations public.

"The Revenue Commissioners act independently in making these decisions. Deputy Lowry has told me that he will co-operate fully with any investigation being conducted by the Revenue Commissioners or indeed by any other relevant body."

The Tanaiste, Mr Spring, said Mr Lowry had behaved "impeccably" when questions were about his business dealings.

"Because he needed time and opportunity to answer the questions, and because he knew that his position would undermine the Government he had helped to establish, he offered his resignation without any equivocation or bluster.

"He owes it to himself now - and I believe he knows this - to offer answers in a way that people can fully understand and appreciate. I welcome his public commitment to co-operate fully with the Revenue Commissioners and any other relevant authorities who have enquiries to make about the transactions involved.

"I would urge him also to recognise, as I'm sure he does, that the people who elected him to Dail Eireann will feel entitled to answers. I have no difficulty in accepting Deputy Lowry's assertion of integrity and propriety - indeed, I believe he has established a high level of personal integrity by the way he reacted last weekend - but I know he will feel that a cloud will hang over his head until the whole matter is cleared up.

Mr Spring said he believed that the Taoiseach had behaved entirely appropriately and with the interests of the community first and foremost at heart. "There will be those who will be hoping that this incident will weaken the Government in some way. It will not. This Government will go on until its due time."

Welcoming the appointment of Mr Dukes, he said he had worked with him in different capacities. "We have even crossed political swords once or twice in the course of our different roles. I have never lost my respect for his commitment, ability and dedication to excellence."

The Democratic Left leader, Mr Proinsias De Rossa, said he wanted to see Michael Lowry "clear his good name".

"His own interests and the interests of politics generally will be greatly served by him doing so."

The present controversy focused attention once again on the relationship between business and politics. Further media claims were now being made which if true would raise further doubts in the public mind about the interaction of business, politics and the media.

"The Price Waterhouse report, which was apparently commissioned privately as part of the internal struggle within the Dunne family for control of their company, seems vital in this regard." At the very least the report must be made available to the Revenue Commissioners to assess whether Michael Lowry and others named complied with all tax requirements and assess whether Dunnes Stores complied with their obligations.

He noted Mr Lowry's statement that the deal involving Dunnes Stores was legitimate in regard to tax, that it would be upheld by the Revenue Commissioners and he was therefore confident about any investigation by the tax authorities. "I hope Dunnes Stores will adopt a similar approach to cooperation with the Revenue Commissioners and that the matter will be clarified beyond any doubt as soon as possible."

Referring to the commentators who questioned the cohesion of the Government, Mr De Rossa said: "The answer is no. This Government will hold together because there is confidence in all three parties that when an issue does arise, especially in relation to ethical questions, it will be dealt with promptly, efficiently and without equivocation."

Mr Bruton, replying to the debate, said Mr Ahern's concern that Mr Ben Dunne had an involvement with Esat Digifone were without foundation. The company was issuing a statement to that effect.

Regarding allegations about personal loans to deputies on favourable terms, Mr Bruton said he would look at the ethics legislation to see if there was a loophole. He did not know of any instance of this happening. "If it is happening it is corrupt and is distinct from party political fund-raising."

A suspicion hung over everyone regarding the "unnamed former minister" in Fianna Fail who was alleged in the Price Waterhouse report to have received payments. That was neither fair nor satisfactory and he joined the other parties in an appeal to have the relevant contents of the report disclosed voluntarily. He had taken legal advice about having the report published under the Companies Act and was told it could only be done by going to court with specific allegations.

The motion approving Mr Dukes's nomination was passed by 68 votes to 56.