Brian Cowen (Laois-Offaly, Fianna Fail)

First, any revision of guidelines would be a matter for the Minister for Finance and the public service in the first instance. To come back to the specific point, I want to make it clear that the situation as it stood at the time was that the person concerned had certain rights and entitlements under the existing contracts he had as an employee of that organisation. The issue then arose on the basis of a meeting between the chairman of the board at the time and the chief executive. They discussed with him settlement terms concerning how he would move on. That was put to the Department of Enterprise, Trade and Employment and then referred to the Department of Finance. The Department of Finance advised the Minister on the matter and approval was given on that advice. That was the situation.

The extenuating circumstances surrounding the issue had something to bear on it but there were basic entitlements. There is this idea that if people were dismissed they would not have certain entitlements but they would have entitlements. The issue was that if we went down that route, would there be a legal challenge and to what extent would that halt the means by which a move could be made and a new person put in place. All of that had to be taken into account.

I do not accept the Deputy's contention that there was something illegal about this, that is not the situation. The decision was made on advice based on discussions between the chairman and the chief executive, referred to the Department of Enterprise, Trade and Employment, referred then for approval to the Department of Finance, and approved by the Minister on that advice.

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