JUST when it looked as though the 11 week controversy over Dr Eddie O'Connor's pay was coming to a conclusion, the Government has again passed the ball back to the directors. Having failed to reach a clear conclusion in the marathon meeting earlier this week, the pressure is now on the directors to come up with unambiguous answers. While a range of different views is understood to have been expressed around the Cabinet table, Ministers finally concluded that they had to have clearer direction from the company board. The directors are, after all, appointed to tackle such problems, Government sources pointed out last night. By merely concluding that Dr O'Connor's package "appeared" to breach Government guidelines, the board has not so far given Ministers a clear view.

A clearly frustrated Mr Lowry outlined five questions which he had now asked Mr Dineen and the board to address.

. Did the board have the power to deviate from the Government pay guidelines?

. Did it have the power to delegate its functions in relation to pay to the chairman and for him to carry them out in a confidential manner?

. Why was there not a normal budget line in Bord na Mona for public affairs?

. Why was cash handed to the managing director to cover unvouched expenses?

. What are the fiduciary duties of the managing director and chairman of the board?

These questions have been very carefully framed. The answers have the potential to provide the Government with the grounds it needs to consider Dr O'Connor's position. It would also be open to the Government to consider seeing if some settlement could be reached with Dr O'Connor under which he would leave his position. However, so far, Dr O'Connor has shown no interest in discussing this and has strongly defended his actions. The Cabinet must have examined all these options last night. The problem as the board reconvenes for the seventh time is that it is far from clear that it can reach a consensus on the issues. The four worker directors are keenly aware of the tremendous job that Dr O'Connor has done at the company.

Some of the other non executive directors, however, wanted to make a recommendation on Dr O'Connor's future to the Government.

Between them and the worker directors on the issue were a small number of directors, who were undecided. Now they have all been asked to try again.