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THE credibility of the Taoiseach’s leadership was on the line last night as two errant Fianna Fáil TDs refused to resign, despite admitting tax evasion and drink driving.

The Taoiseach has seen his popularity ratings with the electorate plummet from almost 70% before the election to his lowest-ever rating of 36% this week. Opposition TDs will use the return of the Dáil next week to target his leadership.

After the drink-driving revelations about Fianna Fáil TD G.V. Wright, the Taoiseach flew back from the US into a political storm over the tax evasion of Fianna Fáil backbencher Michael Collins.

The Limerick West TD was exposed as a tax defaulter by the Revenue Commissioners as he paid over €130,000 to the taxman. The brother of Munster MEP and former minister Gerry Collins faces two inquiries into his conduct to see if he breached ethics laws and guidelines.

Yet the Taoiseach said he did not recall any member of the Fianna Fáil parliamentary party not having a tax clearance certificate.

But reacting angrily to the revelation, opposition parties said there were serious questions to be answered:

How was Mr Collins able to furnish a tax clearance certificate when this issue was outstanding?

How was Mr Collins able to make a statutory declaration that he was in full compliance with the tax laws?

Fine Gael frontbench spokeswoman Olivia Mitchell said questions arose about whether Mr Collins had complied with requirements to provide a tax clearance certificate after his election.

Labour finance spokeswoman Joan Burton said people would draw the comparison between the lack of a prosecution in this case and what she called the harsh sentence imposed on Socialist Party TD Joe Higgins.

The State ethics watchdog also said it was investigating the matter. The Standards in Public Office Commission is to discuss the implications of the tax evasion settlement with the Revenue Commissioners.

The commission said that, under electoral rules, it had received a tax clearance certificate from Mr Collins, as well as a statutory declaration stating his tax affairs were in order.

This declaration was sworn a month after the last general election and several months before Mr Collins reached a settlement with the Revenue Commissioners in relation to a bogus non-resident account and the underpayment of income tax and VAT.

The penalty for knowingly making a false statutory declaration is a fine or imprisonment for up to three months.

In an effort to cover over the deep embarrassment within the party, Fianna Fáil immediately announced an internal investigation into the affair.

Parliamentary party chairman Seamus Kirk said the party’s Standards in Public Life Committee is to look at whether Mr Collins has broken party regulations.

Following the investigation, the committee will take whatever action is deemed appropriate by the party, Mr Kirk said.

Remaining defiant amid calls for his resignation, Mr Collins, in a brief statement, confirmed he had settled his debts.

“I deeply regret the fact that this issue arose in respect of a liability that predated my membership of the Oireachtas,” he said.

The Patrickswell-based TD also said he fully accepted the decision of the Revenue Commissioners.

“I am in possession of a tax-clearance certificate in compliance with the statutory requirements,” the statement said.

The revelations about Fianna Fáil backbenchers’ behaviour also comes at a time of unprecedented unpopularity for the party. According to sources last night, there was a considerable amount of annoyance within the party over Mr Collins’s conduct.

The 62-year-old TD was on a list of 400 tax defaulters, published by the Revenue Commissioners yesterday, and his €130,602 settlement was broken down into €32,000 for underpayment of income tax and VAT as well as tax due on income in a bogus non-resident account owned by the TD and €98,601 in interest and penalties.