Mr Charles Haughey had cast a "long dark shadow" over Irish political life, which was still coming to terms with his legacy, Mr Des O'Malley told the Dail last night.

The former PD leader said it was now more clear than before why certain leading figures in Fianna Fail - among them Mr Padraig Flynn - were so opposed to the idea of coalition with the Progressive Democrats in 1989.

"Could it be that they were afraid we would cramp their style of doing business, I wonder?" he asked.

Mr O'Malley said his party could continue in office only while there was trust and confidence between the two Coalition partners.

"The position of the Progressive Democrats is straightforward. We do not expect people in public life to be saints or paragons of virtue. All we ask is that those in public life, and especially those in high political office, abide by normal and reasonable standards of honesty and decency in dealing with affairs of State. If we are to be criticised for holding that position, then this democracy is in more trouble than any of us realise."

Claiming that Mr Haughey had cast a long dark shadow over Irish political life, he said: "It is nearly 20 years since he became Taoiseach, seven since he left public life, but our political system is still struggling to come to terms with his legacy. In this debate this evening, we are addressing ourselves to one aspect of that legacy."

Mr O'Malley referred to how, under Mr Haughey, members of the current Progressive Democrats had been expelled from, or were forced to leave, Fianna Fail. "But there were many who did not leave, many who felt totally comfortable in the kind of party which Charles Haughey had created. Among those was Mr Padraig Flynn. It might not be widely appreciated, but Mr Flynn and myself have something in common - we have both been dumped upon from a height by Fianna Fail."

Calling on Mr Flynn to respond to the allegations made against him, Mr O'Malley said: "The questions being posed for Mr Flynn are not complicated: they are simple, straightforward and easy to answer. And yet he declines to do so. He informs us that he will say his piece to the planning tribunal.

"Is he hoping that he will have been able to complete his term in Brussels before he is called to give evidence in Dublin Castle? What does he have to fear from telling the truth?

"Mr Flynn is a public servant, working for the people of Europe and the people of Ireland. The people of Ireland - Taoiseach, Tanaiste, Opposition and national media - have asked Mr Flynn to account for himself and to do so now. If he has any respect for the position he occupies, he should do so immediately." ail - Mr Flynn being notable among them - were so opposed to the notion of coalition with the Progressive Democrats back in 1989. "Could it be that they were afraid we would cramp their style of doing business, I wonder?"

Mr O'Malley added: "We may have no general election for two or three years, but events may dictate otherwise. Whenever the next election is held, the question of standards in public life is likely to be one of the main items on the political agenda - if not the main item."

Mr O'Malley pointed to the finding of the Moriarty tribunal that one of the investors in a Haughey family company was Mr Michael Murphy "who has been a close associate of, and long-time insurance broker to Mr Larry Goodman. He helped to negotiate Mr Goodman's earliest export credit insurance cover for Iraq.

"He was also insurance broker to the Department of Agriculture until they sued him last December in respect of the huge losses they sustained in a major fire at a beef intervention store in Ballaghadereen in 1992."

Politicians had a clear choice in how they responded to any such revelations, he said.

They could respond with courage to eradicate the "cancer of corruption" or they could shirk their responsibility.