Following the general election of 2007 Ahern was elected to a third term as Taoiseach, leading a rainbow coalition of Fianna Fáil, the Green Party and the Progressive Democrats, and also supported by several Independent TDs. This is the first Rainbow coalition comprising Fianna Fáil, with all their previous coalitions comprising just one partner.
Requiring 83 seats to return the government, Ahern’s options were to attempt to govern with the Progressive Democrats plus two “gene-pool” independents (Jackie Healy-Rae and Beverley Flynn) and one or more of the other three independents (Michael Lowry (ex Fine Gael) Finian McGrath or Tony Gregory). The other options were an alliance with the Green Party or the Labour Party. In the event, Fianna Fáil negotiated a programme for government with the Green Party, and formed a new rainbow coalition with the Green Party and the Progressive Democrats, supported by Healy-Rae, Flynn, Lowry and McGrath.
Ahern’s reputation was damaged by the accusation of cash gifts received that have transmuted to loans from businessmen. His reputation as the Teflon Taoiseach (no allegation of unethical behaviour has stuck to him until September 2006) was damaged. He was criticised in the foreign press as well as in the Irish media.
To the surprise of many observers, polls taken during and after the crisis indicated a sharp rise in support for the Ahern government and a corresponding fall in support for the Opposition parties. While 55-64% of the public believed that he was wrong to accept the payments, support for his party rose to 39-42%, while support for the main Opposition parties Fine Gael and the Labour Party fell to 20-26% and 10-11%. Two-thirds believed he should not have resigned. The polls provoked complaint from the media. The Irish Times commented they were a “poor reflection of ourselves”.
Ahern stated in an interview in the Village on 22 May 2007 that he intended to retire from politics when he is 60. He stated this would mean standing down as Taoiseach before the end of the current Dáil term, which ends in 2012 at the latest.
On 4 July 2007 Ahern stated at a conference in Donegal, that he did not understand why people sitting on the sidelines, moaning and cribbing about the economy did not commit suicide. These comments came at a time when Ireland’s economy is beginning to falter,and with property prices falling by up to 10% as part of the Irish Property Bubble.
In an opinion poll taken in September 2007, subsequent to Ahern’s initial two day appearance at the Mahon Tribunal, fewer than one-third of voters now believe Ahern’s accounts of his finances.
Opposition parties had previously been muted in their reaction but in September 2007 Labour Party leader Eamon Gilmore called for Ahern to resign in light of his appearance at the Mahon Tribunal and on 23 September 2007.
Fine Gael leader Enda Kenny was heavily critical of the “rambling, incoherent” answers offered by Ahern to the Mahon tribunal in September 2007. Kenny said there was now a situation whereby a witness before a tribunal, testifying on oath, “is continually changing his story”. It “create[s] a credibility problem and that’s the issue the Taoiseach has got to deal with”.
On resumption of the Dáil on 26 September a motion of no confidence in Ahern’s Government was moved by Fine Gael leader Enda Kenny, based on Ahern’s statements to the Mahon Tribunal. The Green Party, PDs and Independent TDs who support the Government voted for Ahern in the motion of no confidence. In a stormy three-hour Dáil debate, Ahern was accused of telling “lies” and was called upon to resign.
The no confidence motion was defeated by 81 votes to 76, with all six Green Party TDs, two PDs and four Independents, Finian McGrath, Beverly Flynn, Michael Lowry and Jackie Healy-Rae voting with the Government. In an opinion poll published in November 2007, some three-quarters of voters indicated that they did not believe that Ahern had given a full disclosure about his personal finances to the Mahon Tribunal. The opinion poll also showed more than half of the electorate believing that the whole episode was now a serious political issue for Ahern.
A later opinion poll taken on 22 January 2008, on the issue of Mr Ahern’s personal finances and tax liabilities, found that “78% of people do not believe he has given the full picture (up 6%) while just 14% believe he has given the full picture (down 3%).”
The Minister for the Environment John Gormley said on 22 February 2008, that revelations concerning the Taoiseach at the Mahon Tribunal were distracting from the work of government.
Opposition parties on 22 February 2008 branded the Taoiseach’s financial affairs as a “national embarrassment”, which should prompt his immediate resignation.
Grainne Carruth’s acceptance as a matter of civil probability that she had lodged sterling sums to Ahern’s account at the Drumcondra branch of the Irish Permanent Building Society in the 1990s has sent shock waves through the ranks of Fianna Fáil. On 27 March 2008 the unease at Ahern’s declarations at the Mahon Tribunal, as contradicted by his former secretary at the tribunal were highlighted when Progressive Democrat coalition partner leader Mary Harney, traditionally a stern supporter of her former FF colleague, called on Ahern to make a statement.
The disquiet within the coalition was further emphasised when Green party leader John Gormley said that Ahern should clarify the contradiction between his evidence and that of his former secretary Grainne Carruth.
An opinion poll published on 25 November 2007, showed that support for Fianna Fáil dropped by seven percent, “following the announcement of large pay increases for the government and senior public servants against a backdrop of continuing economic uncertainty and high-profile failures in the health service.”
On 2 April 2008, Ahern announced his intention to resign as Taoiseach and as leader of Fianna Fáil on 6 May 2008.
On 30 April 2008, in Washington DC, Ahern became the sixth Irish leader to address the United States Congress. He is also the sixth person who has addressed both the United Kingdom’s Parliament and the United States Congress.
On 6 May 2008 he performed his last official duty as Taoiseach in opening the Battle of the Boyne visitors centre with Northern Ireland First Minister Ian Paisley.
Ahern was appointed to an international advisory group on conflict resolution on 14 July 2008. In addition Ahern serves as a board member of the peace and reconciliation charity Co-operation Ireland.
