Ahern set to ask for Callely's resignation

Taoiseach Bertie Ahern will today ask embattled Minister of State Ivor Callely to resign or he will dismiss him from the Government.

Yesterday’s Budget Day was overshadowed by the controversy that Mr Callely’s home was renovated for free by a building firm in the early 1990s.

John Paul Construction was also engaged at the time in a major contract for the Eastern Health Board, of which Mr Callely was chairman.

The issue will be discussed at an emergency Cabinet meeting this morning.

The Dublin North Central TD has so far refused to quit because he claims he has done nothing wrong.

But a grim Mr Ahern said last night: “I will deal with it in the morning. I’ve made it very clear and Ivor knows what I will do.”

In another twist, Minister of State Tom Parlon last night claimed that the controversy may be politically motivated.

“It would be a bit much to suggest that it was a pure coincidence that the story breaks at 8am on the morning of the best Budget this Government has ever seen,” the Progressive Democrats TD told RTE.

Mr Ahern also consulted with Tánaiste Mary Harney on the issue last night after earlier meeting Mr Callely.

Rejecting Opposition calls to resign, Mr Callely, 47, said in a statement last night: “I did not do anything wrong. If I resign, am I to go down as having done something wrong?”