The Tanaiste, Ms Harney, rejected a claim that the Minister for the Environment, Mr Dempsey, was involved in a conflict of interest as joint treasurer of Fianna Fail.

Ms Harney was replying to the Labour leader, Mr Ruairi Quinn, who recalled that he had written to the Taoiseach last month "drawing to his attention a conflict of interest involving Mr Dempsey in his role as joint treasurer of Fianna Fail on the one hand, and as Minister responsible for raising limits by 50 per cent on the monies which can be spent on elections, changing the rules which have served us well over the past five by-elections".

Ms Harney, who was taking the Order of Business in Mr Ahern's absence, said she was aware that Mr Quinn had written to the Taoiseach. "I do not accept there is a conflict of interest in regard to this matter. The Minister for the Environment has been open relating to his proposals."

The Labour spokesman on the environment, Mr Eamon Gilmore, said: "Is the Tanaiste serious? The Minister told nobody about them."

The Fine Gael deputy leader, Mrs Nora Owen, said the proposals had to "dribble" out.

Ms Harney said it was for the Oireachtas to legislate in the area in the end.

Mr Quinn said: "Do I take it that the 50 per cent increase in expenditure that will be authorised by the Fianna Fail party, and the joint treasurer of the Fianna Fail party, to enable them to buy the results of the next election is acceptable to the Progressive Democrats?"

The Fine Gael spokesman on justice, Mr Alan Shatter, said the PDs used to mean something of value "but they are the rump of Fianna Fail".

Ms Harney said the fact that Mr Shatter was a lawyer did not mean there was a conflict of interest between his profession and being spokesman on justice. "He should be careful in what he is saying."