Billy Kelleher (Cork North Central, Fianna Fail)

The Deputy should read the legislation because it clearly sets out how to the board is to be appointed. It is incorrect to suggest that nominating bodies are putting forward cronies.

A serious allegation was made last night to the effect that the Tánaiste and the Minister for Finance were acting outside the law but I subsequently clarified the issues surrounding the legality of the severance payment for the former director general of FÁS, Mr. Rody Molloy. The statutory basis for the payment arrangement is section 6(3) of the Labour Services Act 1987. I draw attention to the fact that sections 6 and 7 of the Superannuation and Pensions Act 1963 pertain solely to civil servants. We accept that breaches of fundamental trust and abuses of taxpayer money took place but it is wrong to suggest that FÁS was an organisation of cronies or that the Tánaiste and the Minister for Finance acted outside the law in the context of removing the director general of FÁS. The Tánaiste acted as quickly as possible to address the difficulties but the people concerned also have rights and entitlements.

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