The Government's nomination of Mr Hugh O'Flaherty as vice-president of the European Investment Bank came under strong attack from the Opposition.

The House will tonight vote on a Fine Gael private member's motion condemning the nomination and seeking repeal of the legislation which provided him with a £40,000-a-year pension.

During last night's debate on the motion, the party's spokesman on justice, Mr Jim Higgins, said "I believe it was a done deal right from the moment Mr O'Flaherty dug in his heels and decided he was not going to resign his Supreme Court position.

"I believe it was a done deal because Mr O'Flaherty had a tale to tell, a tale that had not come out and a tale that could only be suppressed in the best Fianna Fail tradition by resorting to its favourite instrument - political patronage - by having `poor Mr O'Flaherty' looked after."

Mr Higgins asked what hold Mr O'Flaherty had on Fianna Fail, and on whom in the party, that he had to be rewarded with a European job with a salary over three-and-a-half times his £40,000 judicial pension.

"Fianna Fail have on numerous occasions shown utter contempt for the intelligence of the Irish people. It would be difficult, however, to find a more contemptuous or arrogant act than the appointment of Mr O'Flaherty to the vice-presidency of the European Investment Bank," he said

The Fine Gael spokesman on finance, Mr Michael Noonan, said that the Taoiseach, Mr Ahern, was central to the nomination and may have been central to events in the Sheedy affair.

"The Taoiseach has confirmed he made representations to the Minister for Justice on behalf of Mr Sheedy. It has been confirmed that Mr Joe Burke, a close associate of the Taoiseach, retained the architectural services of Mr Sheedy and visited him in Shelton Abbey a few weeks before his release," said Mr Noonan. "It has also been confirmed that Ms Celia Larkin, who at the time ran the Taoiseach's constituency office, visited the O'Flaherty family on Mr O'Flaherty's resignation.

"There is no evidence any representations were made by the Taoiseach, or by anyone on his behalf to Mr Hugh O'Flaherty on behalf of Mr Sheedy. It is a fact, however, that Mr O'Flaherty's appointment has already stoked the flames of rumour and fanned the flames of cynicism, and the Taoiseach must have been aware that this would occur when his Government appointed Mr O'Flaherty," he said.

Mr Noonan said the position of the Progressive Democrats and the Tanaiste, Ms Mary Harney was extraordinary. "It was this very issue that drove the PDs closest to the brink when it was an issue in this House last year." He asked: "is this the same Ms Harney who now sees no problem in appointing Mr Hugh O'Flaherty to this position? Can the Tanaiste explain how events which almost brought down the Government last year are now airbrushed from history to such an extent that one of the principal actors in the drama is being appointed to the EIB?"

The Labour leader, Mr Ruairi Quinn, said that in essence the Sheedy case was about two forms of justice and two different legal systems. One was for the "golden circle" and another for ordinary citizens. "Every member of the public suspects that Friday's act was the final chapter of some kind of arrangement. And the fact that no file exists within the Department of Justice on whatever negotiations took place officially with Judges O'Kelly or O'Flaherty only adds to the suspicion," he said.

Mr Quinn added that while, technically, the decision to make the nomination had been made by the Minister for Finance, "he did, however, make sure to secure approval from all his Government colleagues, although the Tanaiste has clearly lost touch with both her party and her constituency. Ultimately, executive responsibility lies with one man - the Taoiseach.

"So much for the Taoiseach who presents himself as the `common man'. Like any true conservative, he disguises his special regard for the `golden circle' and the establishment by a folksy appeal to the public. But one can scarcely believe that he could be so contemptuous of public concern," said Mr Quinn.

Labour deputy leader Mr Brendan Howlin said that just a year ago there had been a serious political, legal and constitutional crisis, in which Mr O'Flaherty was a central figure. "A year later, history is already being rewritten," he said.