State rows back on Mahon costs pledge

IN AN embarrassing development for Tánaiste Michael McDowell, the Government has backtracked on pledges to rein in the extraordinarily high costs of the long-running Mahon inquiry.

Despite a pledge in 2004 to cut senior lawyers’ rates from €2,500 a day to €900 from this weekend, a Government spokeswoman last night confirmed the current fees would continue indefinitely.

Explaining the move she said: “We have been given information from the tribunal about delays that have been caused because of legal challenges. The Government has decided to accede to those requests.”