The chairwoman of the Commission for Communications Regulation, Ms Etain Doyle, said last night the Department of Communications should honour a work contract it offered her in September.

The contract, which included provision for a company car, a performance-related bonus and an early retirement agreement, would enable Ms Doyle to start drawing her pension at 52.

Correspondence between the Department of Communications and Ms Doyle's office, uncovered by RTÉ radio yesterday using the Freedom of Information Act, shows the Government has refused to sign off on the contract.

The records show that in September the Department issued a contract to Ms Doyle, which included a performance bonus of up to 20 per cent of her salary, provision for payment of pension at age 52 and a car.

The contract was to cover the period from mid-2000 to December 2002 when Ms Doyle worked as head of the Office of the Director of Telecommunications Regulation, the predecessor to the new commission.

This contract was signed by Ms Doyle. The Department of Communications then refused to countersign, saying the contract terms were unacceptable.

Records show the Department was concerned some elements of the package may set an "undesirable" precedent in view of wider public-sector pay implications.

After receiving a letter from Ms Doyle's solicitors, Arthur Cox, the Department offered a compromise proposal, which refused Ms Doyle the car or the bonus but entitled her to receive a pension at 52, calculated on an annual salary of approximately €157,000.

Department officials said this deal was provisional on the Oireachtas passing new legislation as the current law only allows for pension payments at 60.