Taoiseach’s credibility on the line

NOBODY will shed a tear for Ray Burke, the disgraced ex-minister for Justice and Foreign Affairs once described as “honourable” by the Taoiseach.

Mr Ahern claimed his old friend had been "hounded" out of politics when Fianna Fáil found nothing after checking up every tree in north County Dublin. In contrast, CAB went back 20 years and found enough to levy a tax demand of over 2 million on Mr Burke.

The latest twist in the Burke saga, could not come at a worse time for Mr Ahern, now facing mounting criticism from Fianna Fáil ministers, deputies and grassroots party members.

The CAB sensation follows a year-long probe into allegations by Mr Justice Feargus Flood that the former minister had numerous offshore accounts, including an operation named Caviar Ltd, into which corrupt payments and back-handers from developers found their way.

With its extensive powers, the CAB can levy tax on assets received from unknown or illegal sources. While the Burke demand was anticipated, its sheer scale surprised observers.

Clearly, in assessing the amount of income involved, the CAB included his luxury home at Swords in north county Dublin estimated to be worth over 4m million today. According to an interim report from the Flood Tribunal, there was no evidence to show the builders were paid for the house.

Like any other taxpayer, the former Cabinet minister, who has retired from politics, has a month to appeal the demand. As he pursues his favourite pastime watching cricket on television his dilemma is to prove the claim was inaccurate by establishing the money came from a legitimate source. If he fails, the penalties include confiscation or sale of the ex-minister's assets to satisfy the tax demand.

For the Taoiseach, the latest scandal is only one of a growing mountain of problems. Another ex-Fianna Fáil deputy, Liam Lawlor, could also be forced by the High Court to sell his 4m million mansion to pay outstanding legal bills.

In politics, where image and perception mean everything, the omens are not good for the Taoiseach right now. As head of Fianna Fáil, his leadership is increasingly questioned. He is almost certain to face a heave if the party loses 50 seats in next summer's local elections.

From stem-cell research to development levies, revolt is simmering in normally loyal grassroots. His major problem is that he is under fire not only from backbenchers but Cabinet ministers as well.

First, there was the spectacle of the smoking revolt by Environment Minister Martin Cullen. Then, Defence Minister Michael Smith broke ranks and breached collective Cabinet responsibility over the Hanly report on health reform.

The rebellion is also reverberating through the corridors of Tánaiste Mary Harney's department where junior minister Frank Fahey echoed back-bench criticism of 5,000 cuts in community employment scheme places.

If Ms Harney is short 60m , no doubt she could find it sloshing around the stud farms of Kildare. As the vulnerable in society are squeezed, the racing set get millions for leisure centres while the mega rich continue to enjoy a tax-free bonanza on stallion stud fees.

People are fed up with a political system where public service has given way to greed and private gain. With people becoming more disaffected with politics, and with Mr Ahern failing to maintain discipline from Cabinet to grassroots, no wonder the Taoiseach's leadership and credibility are now seriously in question?