The Minister for Finance, Brian Cowen, has said the Taoiseach 'was not incorrect' in accepting £8,000 from a group of businessmen following a dinner in Manchester.
Mr Cowen said Mr Ahern had accepted the payment on the basis that it was given in solidarity from the people concerned, at a period of personal difficulty for him.
The Taoiseach's circumstances at the time were known to people who knew him, Mr Cowen added.
Mr Cowen said he thinks today's statements by businessman John Kennedy in Manchester will help and assist Taoiseach Bertie Ahern in his recollection of events.
Mr Cowen said the statement also corroborated the informality of the occasion, and the fact the Taoiseach was there in a personal capacity and had been there on a number of occasions.
The fullest possible explanation Mr Ahern can give will be made in the Dáil next Tuesday, he added.
Mr Cowen said the Taoiseach had not in any way abused public office, and had not enriched himself by way of his engagement in politics.
Mr Cowen said Mr Ahern had not attended the Manchester function in an official capacity as Minister for Finance, had no official staff with him, had no official speech prepared for the occasion and the trip had not been paid for by his department.
Earlier, a Manchester businessman who was present at the dinner at which Bertie Ahern received the money said the payment was neither a political donation nor a loan.
Speaking to RTÉ News in Manchester, John Kennedy said that the then Minister for Finance was there as a private citizen.
He said the dinner was organised by the late Tim Kilroe - the owner of Aer Arann - and held at a hotel in the city.
Mr Kennedy said around 27 people were at the function and that a collection was made. He said Mr Ahern did not speak at the event.
Mr Kennedy, now retired, said the Mahon Tribunal has been in touch with him about what he knows about the payment.
Meanwhile, the Government Chief Whip has rejected calls for more time for a Dáil debate on payments to the Taoiseach.
Tom Kitt said he had spoken to the whips for Fine Gael and Labour, and believed the proposal he had put forward was 'very reasonable'.
Both Fine Gael and Labour had argued that the time in which to debate the matter was insufficient.
The Taoiseach has said he will be answering questions next Tuesday about the controversy.
- News At One: John Kilraine reports from the Mahon Tribunal on the appearance of Irish Times Editor Geraldine Kennedy and journalist Colm Keena
- News At One: David Davin-Power, Political Correspondent, and Mark Hennessy, Irish Times Political Correspondent, discuss the issue
- News At One: Martin Manseragh, Senator for Tipperary South, predicts that the Government coalition would see out the controversy
- News At One: Brian Cowen, Minister for Finance, gives his response to the payment controversy
- News At One: Michael McDowell, Tánaiste and Minister for Justice, told reporters that his party was committed to Government
- News At One: Dermot Ahern, Minister for Foreign Affairs, speaks to reporters at Farmleigh House about the crisis facing the Taoiseach
- Morning Ireland: Noel Baker gets the views of late night shoppers in Dublin about the payments crisis facing Taoiseach Bertie Ahern
- Morning Ireland: David Davin-Power, Political Correspondent, reports that there are plenty of grim faces at Farmleigh this morning, where Mr Ahern is meeting former US President Bill Clinton
- Morning Ireland: Minister for Finance, Brian Cowen, and Richard Bruton, Deputy Leader & Finance Spokesperson for Fine Gael, debate what Mr Ahern needs to do to address the situation
- Morning Ireland: An excerpt from the Minister for Children, Brian Lenihan, on RTÉ's Prime Time last night
- Morning Ireland: Tánaiste & Minister for Justice, Michael McDowell, speaking yesterday, says the Taoiseach has significant matters to clear up on the issue
- Morning Ireland: Cian McCormack talks to three Fianna Fáil Parliamentary Party members to get their views on the current controversy
- Morning Ireland: David McCullagh, Political Correspondent, reports that Tánaiste Michael McDowell is looking for answers from the Taoiseach
- Nine News: David Davin-Power, Political Correspondent, reports on the political fall-out from the payments to the Taoiseach
- Nine News: John Kilraine reports that The Irish Times editor Geraldine Kennedy and journalist Colm Keena have refused to disclose the source of the leak regarding payments to the Taoiseach
- Nine News: Brian O'Connell, London Editor, reports that businessman John Kennedy has given an account of the meeting at which the Taoiseach was given £8000
- Six One News: Brian O'Connell interviews John Kennedy
- Six One News: Brian Cowen, Minister for Finance, gives his reaction to the comments of John Kennedy and the situation as a whole
- Six One News: John Kilraine reports from the Mahon Tribunal on the appearance of editor of The Irish Times Geraldine Kennedy and correspondent Colm Keena
- Six One News: David-Davin Power, Political Correspondent, reports on the political reaction to the Manchester payments
- Six One News: David McCullagh, Political Correspondent, reports from Leinster House on the latest claims by John Kennedy
- Six One News: Brian O'Connell, London Editor, reports from Manchester on the confirmation by John Kennedy of the payment to the Taoiseach
- One News: David Davin-Power, Political Correspondent, says that Bertie Ahern has had little to say on the matter today
- One News: Tánaiste Michael McDowell, speaking at the National Ploughing Championships, says the Progressive Democrats are committed to the current Government
- One News: Watch the report

