THE settlement reached with Dr Eddie O'Connor was "fair and balanced" and "meets the requirements of the situation", the Minister for Transport, Energy and Communications, Mr Lowry, told the committee.

Mr Lowry said that once it was clearly established that there had been serious breaches of corporate governance, the Government had to take action. He said it was difficult to envisage how Dr O'Connor could continue as managing director with the full confidence of the board.

The Minister, who had asked the Bord na Mona board to answer 13 questions concerning Dr O'Connor, said that, from the replies he received, it was obvious the board was not united. "That being so, the Government was required to negotiate a settlement with Dr O'Connor within the constraints of legislation governing the appointment of Bord na Mona's managing director."

He stoutly defended the length of time it took to deal with Dr O'Connor's remuneration, saying there had to be fair play and natural justice. "On a number of occasions, the investigation into the managing director's pay and expenses was delayed at Dr O'Connor's request."

He said Dr O'Connor held ultimate management responsibility for payment procedures of which he was the beneficiary. "That would not be acceptable as good practice in any other State company or in any well run private enterprise", he said.

He said Dr O'Connor was not an obstacle to what needed to be done at Bord na Mona.