No ‘bankers’ yet in race for Honohan post

A fortnight has passed since it emerged Central Bank governor Patrick Honohan planned to leave early. In question now is whether the Government invites external applications for the post. It didn’t when the top seat in the Department of Finance came up last year, but the Central Bank job may be different.

The move to return command of the department to the civil service makes an open competition for the Central Bank post all more the likely. In the new post-bailout world, any return to an automatic changeover between Merrion Street and Dame Street would seem a little rash. No matter what the eventual outcome is, it would be better to have a contest.

If the position is to be advertised, however, this would have to happen soon enough. Prof Honohan, who turns 66 in October, has signalled he will leave by the end of the year. Given that candidates of sufficient seniority outside the State system would require a relatively long notice period, an early invitation for applications seems likely.

Quite who applies and quite where the post ultimately goes are other matters. Of the Merrion Street cohort, a small number of names are mentioned. Robert Watt, secretary general of the Department of Public Expenditure, is cited in various quarters as a possible contender. So too is Ann Nolan, second secretary in the Department of Finance. John Moran, the former banker who left the top post in the Department of Finance last year, is also mentioned but his intentions are unclear. Moran was the first outsider to run the department but his departure surprised ministers.

Then there is the Dame Street crew. The intentions of deputy governors Cyril Roux and Stefan Gerlach are unknown. Other potential contenders within the Central Bank include chief economist Gabriel Fagan and head of markets supervision Gareth Murphy.

This is to say nothing of potential candidates from the outside world.