The effectiveness of the Revenue Commissioners in collecting taxes due from Mr Charles Haughey and Mr Michael Lowry is to be investigated by a tribunal of inquiry which the Dail will establish today. The tribunal will investigate the funding of Mr Haughey's lifestyle and the possible effect any payments might have had on government decisions during his years in power. It will address similar questions in relation to Mr Lowry.
The terms of reference of the inquiry were amended by the Government yesterday to include the functioning of the Revenue Commissioners, following representations from the Labour Party leader, Mr Dick Spring, and the Fine Gael leader, Mr John Bruton,
This is the first time the taxgathering effectiveness of the Revenue Commissioners has been subjected to such an official investigation. It follows public criticism of the agency's perceived failure to enforce tax laws.
The tribunal has been asked to examine, in the context of the Dunnes Payments Tribunal Report, "whether the Revenue Commissioners availed fully, properly and in a timely manner in exercising the powers available to them in collecting or seeking to collect the taxation due by Mr Michael Lowry and Mr Charles Haughey. . ." The other main change in the terms of reference by the Government involves the introduction of possible reforms of the political system and of company law.
The tribunal, which is to make an interim report to the Dail in December, will be asked to make recommendations "to ensure that the relationship of politics to private contributions and influence is always seen to be entirely above board and that the standards by which public policy is conducted are held in the highest esteem."
It will also be asked "in the light of its findings and conclusions, to make whatever broad recommendations it considers necessary for the reform of company law."
The Minister for Foreign Affairs, Mr Burke, is due to make a personal statement to the Dail today, before the tribunal is established, on his acceptance of £30,000 from a building company in 1989, during an election campaign and when he was a government minister.
For weeks Opposition parties have been demanding that Mr Burke's affairs also be investigated by the tribunal. Given the Government's refusal to bow to that demand, the strategy of the Opposition parties will depend on the persuasiveness of Mr Burke's statement and his answers to Dail questions.
Fine Gael has not ruled out tabling a motion of no confidence in the Minister for Foreign Affairs, Catherine Cleary adds. The party's leader, Mr John Bruton, said yesterday the option of a noconfidence motion was one of three open to the party if it was not satisfied with Mr Burke's statement. The other options would be to include Mr Burke in the terms of reference of any new tribunal on payments to politicians or to have an Oireachtas committee investigate the allegations.
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