Mick Wallace once threatened to set a hitman on a fellow developer who owed him money, it has been reported.

A 2005 interview has resurfaced in which Wallace, then enjoying massive success, told of his unorthodox approach to collecting debts.

In the Business & Finance interview, Wallace recounted how his company had once hired by a major developer, only to be short-changed to the tune of IR£20,000 (€25,000).

Legal action was proving frustratingly slow, and so Wallace decided he needed some extra help.

"So I knew of a guy [who] made a living out of a gun," he recalled in the interview. "I made contact with him and said: ‘Listen, there’s a guy owes me £20,000 — will you get it for me?’ He said he would give me £16,000 and keep £4,000.

"There was a guy working for the builder and I deliberately went for a pint with him. ‘Did you hear I’m getting the money out of your boss?’" I said to him. "‘I hired a hitman and he’s going to get it. Don’t tell anyone now.’

"Next day I got a phone call from the managing director. ‘Mr Wallace,’ he says, ‘I believe there is a bit of a financial dispute on that job. Can we meet and talk about it?’

"I met them and they offered me £15,000. I said I’d take £16,000. Of course, I never would have dreamt of actually hiring the hitman. I only used him as leverage, but it worked."

Mr Wallace could not be reached for comment last night. But his political plight over his false tax declaration worsened after ceann comhairle Sean Barrett asked a Dáil committee to investigate the matter.

Mr Barrett said he was doing so "in view of the grave issues raised by the admission by Deputy Mick Wallace of his under-declaration of Vat payments by his construction firm and the implications this has for democracy and the standing of the Dáil and the members".

Mr Wallace admitted this week to under-declaring his company’s Vat liabilities by €1.4m in 2008/2009 at a time when the economic crash had left the business struggling.

A settlement of €2.1m, including interest and penalties, has been agreed with Revenue, but the money is unlikely to be paid, as the company is insolvent and Mr Wallace is not personally liable.

This story courtesy of the Irish Examiner.