Opposition TDs failed yesterday in the Dail to have the tribunal investigate the use of the party leader's allowance paid to Mr Charles Haughey.

About £1 million was paid from State funds to Mr Haughey in his capacity as leader of the opposition during the 1980s, but the Government rejected demands that its disbursement be included in the tribunal's terms of reference.

But it agreed to opposition requests to allow the tribunal to decide what investigations, if any, should be held in private.

It had been proposed that the tribunal's preliminary investigations would be held in private, but now the initial approach will be at the tribunal's own discretion.

On the leader's allowance, Fine Gael deputies Michael Noonan and Sean Barrett proposed an amendment to the terms of reference requiring the tribunal to investigate whether any money paid to Mr Haughey was used to discharge money or debts owed by him or any company or person connected with him.

The Minister for Finance, Mr McCreevy, said that until the passing of the Oireachtas (Miscellaneous Provisions) Act last December, the leader's allowance had always been paid to the party leader or a bank account nominated by them. That applied to all parties. The Act had set out that the money must be used for parliamentary activities including research.

When this matter was raised some months ago, the Taoiseach consulted the party administrator who was in office when Mr Haughey was party leader. The Taoiseach was satisfied that there had been nothing untoward in the way the money was spent, said the Minister.

He asked if deputies were suggesting that the Comptroller and Auditor General investigate all the activities of all the parties during the particular period. "I am not prepared to accept the amendment in relation to those particular matters."

The amendment was defeated by 77 votes to 69. Independent deputies Mr Harry Blaney (Donegal North East), Ms Mildred Fox (Wicklow) and Mr Jackie Healy- Rae (Kerry South) rejected the amendment. Mr Joe Higgins (Socialist Party, Dublin West), Mr Caoimhghin O Caolain (SF, Cavan Monaghan) and Mr Thomas Gildea (Ind, Donegal South West) all voted for the amendment.

The decision to allow the tribunal decide the investigations it would conduct in private followed Mr McCreevy's acceptance of a proposal by the Labour leader, Mr Spring. This required the tribunal "to carry out such investigations as it thinks fit using all the powers conferred on it under the Acts [including, where appropriate, the power to conduct its proceedings in private]".