Róisín Shortall (Dublin North West, Labour)

I can understand that the Cabinet was very keen to get Mr. Molloy off the pitch as quickly as possible given the controversy he caused and the ongoing embarrassment he was causing to the Cabinet. However, the fact is that the Cabinet is not above the law. It is required to adhere to the law and to guidelines which cover these matters. The guidelines which came from the Department of Finance in 1998 cover situations where chief executives leave their positions and the terms under which they can receive packages. Not only do those guidelines apply to all chief executives leaving their posts, but those same guidelines were an appendix to Mr. Molloy's contract, so there is no question or doubt about the fact that those guidelines should have been applied to the severance package.

Those guidelines set out the terms in which a severance package might be enhanced in the event of a contract being terminated. That was not the case in regard to Mr. Molloy. He had tendered his resignation and, before the deal was done, his letter of resignation was with the Department of Finance.

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