Government knew of Mahon tax deal

THE Government acknowledged yesterday that it was fully aware of Judge Alan Mahon's 1992 tax settlement at the time he was appointed.

A statement issued by Taoiseach Bertie Ahern's spokeswoman confirmed documentation in relation to Judge Mahon was submitted to the Cabinet by the Judicial Appointments Advisory Board (JAAB), which examines the suitability of potential judges.

It went on to say that the documentation did disclose his 1992 tax settlement and that the information was made available to the Government.

Additionally, it made clear the judge had submitted a tax clearance certificate and a declaration, as required under the provisions of the Standards in Public Office Act.

"The Cabinet was of the view that there was no impediment to his appointment and that remains the case," said the spokeswoman.

The political reaction to the clarification was surprisingly low key, given the nature of the Planning Tribunal's investigations into undeclared payments and the disclosure's potential political embarrassment. Questions were raised, mainly by the Green Party, about the extent of the Government's knowledge of the settlement in advance of the appointment and whether or not then Attorney General Michael McDowell (a member of the JAAB) had informed his Cabinet colleagues at the time. However, in a rare show of political unanimity yesterday, all four opposition party leaders rallied around the Government in the Dáil, expressing their acceptance of its position.

Observers attributed this to concerns in all parties that the tribunal should continue without interruption, especially in light of the uncertainty surrounding the inquiry's future around the time of Mr Justice Feargus Flood's resignation as chairman.

It was pointed out that the judge had made a full disclosure of the settlement prior to his appointment.

Judge Mahon, who chaired yesterday's hearing of the tribunal, did not add to his Wednesday statement In the absence of the Taoiseach from the Dáil yesterday, Minister for Defence Michael Smith made a statement on behalf of the Government, saying the JAAB had recommended Judge Mahon was suitable to be appointed to the bench.

"The Government accepts unequivocally the suitability and integrity of Alan Mahon, both as a judge and as chairman of the tribunal," he said.

Fine Gael leader Enda Kenny and Trevor Sargent of the Green Party referred to the need for Government to clarify (to the public) the information available. Labour Party leader Pat Rabbitte said he accepted the position, as did Sinn Féin's Caoimhghín Ó Caoláin, who said the tribunal's work should not be interrupted.

The second Government statement referred to an initial refusal to be drawn into the controversy. When the settlement first came to light on Wednesday, the Government said it had nothing to say on the matter.