Justice Minister Alan Shatter and Independent TD Mick Wallace have clashed over the use of garda information.

Justice Minister Alan Shatter has apologised for his use of confidential garda information against a political opponent.

As the minister faced down multiple calls for his resignation, he was forced to defend his attack on Independent TD Mick Wallace last week during an on-air debate about the penalty points controversy.

“I believe that I acted in the public interest and my doing should have none of the connotations that some have ascribed to it,” Mr Shatter said.

“However, as I have acknowledged on other occasions, none of us have a monopoly of wisdom.

“If Deputy Wallace feels that I did him some personal wrong by mentioning it, then I have no problem in saying I am sorry.”

Mr Shatter rejected suggestions he would use confidential information to damage an opponent.

“I want to give a solemn assurance to the house that I am not in the business of receiving, seeking or maintaining confidential, sensitive information from An Garda Síochána about members of this house, the Seanad or, indeed, anyone in political life,” Mr Shatter added.

“Nor are the gardaí in the business of providing it.”

Mr Shatter and Mr Wallace clashed last week on RTÉ Prime Time over whether gardaí should be allowed to use their discretion in quashing minor motoring offences or fixed charges.

The Justice Minister revealed during the debate that Mr Wallace was caught by gardaí last year at the Five Lamps junction in Dublin’s north inner city for using a mobile phone while driving but was not fined or charged.

The Independent TD has lodged complaints with the Standards in Public Office Commission (Sipo) and the Data Protection Minister.

Mr Shatter said he believed it was in the public’s interest to reveal the information – which he had obtained from Garda Commissioner Martin Callinan during a special garda briefing.

He added that the Independent TD had been making “grossly unfair” comments about gardaí during the TV debate and that he wanted to restore public confidence in the force.

“It was wrong of deputy Wallace to pillory others for the proper exercise of a lawful discretion,” Mr Shatter said.

“It was my judgment that it was both necessary and in the public interest that I point out that deputy Wallace had himself been a beneficiary of that discretionary exercise.

“I believed that there was an extraordinary inconsistency between what deputy Wallace had to say and what actually occurred in his case. I made the point, not to make a political charge against deputy Wallace, nor for any personal benefit, but to defend the integrity of An Garda Síochána.”

The minister also insisted he is “subject to the laws of the land” in relation to how he uses information he receives from gardaí.

He said there was nothing sinister about the way in which he obtained the information on Mr Wallace from Garda Commissioner Callinan.

As opposition TDs called for the minister’s resignation, Mr Wallace said all he wanted was a public inquiry into the penalty points controversy.

He said he was not interested in an apology or resignation, but simply transparency and accountability.

The Wexford TD added: “I’m very weary of the fact that he can misuse his power in this manner. It isn’t so much that he knows this, that or the other about me. But I would be very worried about the fact he sees fit to misuse his power in this manner.”

Meanwhile, Sinn Féin TD Padraig MacLochlainn said he was concerned by the Garda Commissioner handing the minister “tittle-tattle” in divulging the information about Mr Wallace.

He said Mr Shatter’s relationship with the Garda Commissioner was “unhealthy”.

Earlier, Taoiseach Enda Kenny dismissed calls for the minister’s resignation amid accusations he had abused his position of power.

Mr Kenny insisted the information given to Mr Shatter was relevant and he denied suggestions that files might be held on other politicians, public figures or journalists.

“It’s outrageous for you to make a claim or insinuation that the Minister for Justice is going around collecting files on individuals or members of this House … that’s an outrageous claim,” Mr Kenny said.

Wallace's former Technical Group colleagues have distanced themselves from the controversial TD. (Pic: File)

Tax-evading TD Mick Wallace has been left further isolated by former political allies over his admissions that he threatened to hire a hitman.

Left-wing TDs in the Technical Group made it clear to the Wexford Independent that he is not welcome in their ranks because of his exploits to recover a £20,000 debt in the old Irish punt.

Group leader Thomas Pringle said Mr Wallace’s comments on national radio at the weekend incensed members.

“That kind of behaviour is absolutely ridiculous and a lot of our members were not happy at all about it,” said Mr Pringle.

The group agreed in its weekly meeting that sharing Dáil speaking time with Mr Wallace would cause huge problems, the Donegal TD said.

Individual members are still welcome to share their speaking time with the failed property developer if they wish, he said.

Mr Wallace left the Technical Group in June amid controversy surrounding a VAT bill.

Mr Pringle confirmed that the Wexford TD considered asking to rejoin the Technical Group last week but he is understood to have decided against it.

Mr Wallace admitted earlier this year that he under-declared VAT returns as a building company ran into severe debt and that came to a €2.1m settlement with Revenue Commissioners.

The shamed TD narrowly avoided a decision from party whips to pursue a motion of censure.

Mr Wallace stepped down from the Technical Group after fellow members, including Socialist party TD Joe Higgins, made it clear that they could not support his actions.

The further isolation for Mr Wallace follows an interview he gave on RTÉ Radio at the weekend in which he openly discussed that he once threatened a debtor that he would hire a hitman to recover unpaid money.

The hitman revelation resurfaced seven years after it was first reported in an interview Mr Wallace gave to Business and Finance magazine.

A complaint has been made to gardaí over it by Anthony Sheridan, from Cobh, Co Cork, a retired Irish Navy non-commissioned officer who runs a public information website.

Mr Wallace has denied rumours that he is in a relationship with Clare Daly TD, the former Socialist party member who quit its ranks in a row about whether she should publicly denounce her Dáil colleague’s tax evasion.

Independent TD Mick Wallace

Mick Wallace has pledged to use half his TD’s salary to settle his VAT bill with Revenue.

The Wexford Independent formally apologised for lying to the taxman about money owed by his former construction firm.

“I am taking steps to immediately arrange that half my Dáil salary will go towards paying MJ Wallace Ltd’s VAT liabilities with the Revenue,” said the emotional TD as he addressed the Dáil.

Mr Wallace said he feels obliged to cover the company’s €2.1m liabilities out of his own pocket as a mark of “solidarity to the Irish citizens”, whom he now works for.

He maintained he made an error of judgment when he lied about his VAT bill as the property bubble burst, but stressed his personal finances were always under control.

“The manner in which the VAT was dealt with was, in hindsight, an error of judgment made under pressure at a time when the approach of the banks were changing dramatically and the value of property was dropping sharply,” Mr Wallace went on.

“There was never an intention that the money that was owed would not be paid to Revenue and the motive behind the underpayment was to delay payment in order to see out this difficulty.”

Mr Wallace, who earns more than €130,000 a year in pay and perks, also admitted he had considered resigning his position, but said he was not a quitter. His actual salary is around €90,000, which would mean he is committed to paying back about €45,000.

The property developer turned politician told Revenue he knowingly under-declared €1.4m in VAT in 2008 and 2009, as tax chiefs were carrying out an audit investigation into his business MJ Wallace Ltd.

Mr Wallace had initially distanced himself from the tax bill which piled with penalties and charges, stands at €2.1m.

He stated it was the company’s liability and that as it is now insolvent, could not be paid back to the authorities.

“This was not a cavalier comment, but a statement of fact,” he went on.

However, the 56-year-old said he was aware that his remarks had upset Irish citizens who were struggling due to the dire economic climate.

The usually flamboyant Independent was on the verge of tears as he addressed his colleagues – notably without his trademark pink T-shirt and instead dressed in a more sombre dark blue.

He spoke for around 10 minutes, despite being allocated 15 minutes in the chamber.

Mr Wallace said an agreement to pay back the VAT owed was reached in 2010, but following a court case at the end of last year in which he was ordered to re-pay €19m to ACC Bank, it became clear the company could not make its repayments.

The developer had made the decision to lie to Revenue about the company’s VAT returns after it started struggling to finance a project it had committed to in 2008.

He said his bank had pledged more money than it would ultimately lend.

The company, which was forced to make redundancies, then came under pressure from suppliers, sub-contractors and banks, which were becoming “increasingly aggressive”.

It was therefore unable to pay its VAT at the time, although Mr Wallace had hoped to repay the full amount within six to 12 months.

“It was feared that if the problem was revealed at the time that either Revenue or the banks would have moved against the company and put it out of business,” he said.

Government chief whip Paul Kehoe agreed to let Mr Wallace address the chamber after his request was initially refused by Dáil chairman Seán Barrett.

Several TDs have called on the Independent to resign since the scandal broke last week, while he was also asked to leave the Dail’s technical group.

Meanwhile an ethics watchdog – the Members’ Interests Committee – has requested Mr Wallace to authorise Revenue to disclose their dealings with him.

Chairman Thomas Pringle said the group needs a timeframe as to when Mr Wallace informed the tax chiefs of his VAT dodging and exactly when the settlement was reached.

If it finds the platinum-haired politician had these dealings with Revenue after he became a TD, it will have grounds to investigate.

The group could, if it investigates Mr Wallace and finds against him, suspend the deputy from the Dáil for up to 30 days without pay.

Independent TD Mick Wallace faces threat of censure over tax revelations. (File pic)

Calls have been made for a formal investigation into tax-dodging TD Mick Wallace.

Fine Gael’s Charlie Flanagan said there should be consequences for the Independent deputy, who has been landed with a €2.1m settlement after making false tax declarations to the Irish tax office.

Mr Flanagan said the Standards in Public Office Commission should probe the Wexford TD’s tax dealings.

The Oireachtas watchdog can recommend a motion of censure which could see Mr Wallace forced to resign from the Dáil.

“The appropriate body should interview the deputy, there should be a short investigation and we turn over the facts, and at the end of the day that body should decide on enforcement consequences,” said Mr Flanagan.

The Fine Gael parliamentary party chairman said it was unacceptable for any citizen, let alone a member of the Dáil, “to play ducks and drakes” with the Revenue Commission.

“I believe unless this matter is pursued, we are setting a very bad example and, in fact, we are turning a blind eye to what may be an illegality,” he added.

Taoiseach Enda Kenny said he would not comment on an individual case, adding: “I understand that a settlement has been arrived at here and it’s up to the statutory authorities to follow that through.”

Meanwhile most of the Independent TDs who make up the Technical Group – of which Mr Wallace is a member – have been uncharacteristically quiet in the wake of the revelations.

Earlier, Mr Wallace insisted he is fit to serve in the Dáil despite admitting he knowingly under-declared VAT returns to tax chiefs in a bid to save his failing construction firm MJ Wallace Ltd.

“I acknowledge what I did was wrong but I did it in good faith,” said Mr Wallace.

“I really did believe that I would be able to pay the VAT at a later stage.”

The Independent TD attributed his company’s problems to the economic crisis, which had become too much for his business in 2008 and 2009.

Mr Wallace said he was trying to save his apartment sales company and the jobs of the 60 people working for him.

In an agreement with Revenue, the company was found to have under-declared around €1.4m in VAT. But with interest and penalties piled on, it now owes some €2.1m.

Mr Wallace is not personally liable to make the payment. He said it is the company’s debt and as it is now insolvent, the bill may never be settled.

When asked if he believes he is still fit to serve in parliament, the TD told RTÉ: “I believe I am.”

The €2.1m settlement will be published on the Revenue’s quarterly list of tax defaulters next week.

ACC Bank secured a €19.4m judgment against MJ Wallace Ltd in November 2011 and a receiver was appointed over the company’s assets.

Mr Wallace said he has been threatened with bankruptcy a number of times over the last year but insisted he will fight any such moves.

A TD who is declared bankrupt is required by law to resign from the Dáil.