Lynch to stay as CIÉ chief for three months

THE GOVERNMENT has asked Dr John Lynch to stay on as executive chairman of CIÉ for three more months but has pledged to shake up the State-owned public transport company’s management as his successor takes over.

Dr Lynch’s eight years at the helm of the group that controls the State’s bus and train services is due to end on Monday. But as no successor has been appointed, the Government has asked him to stay on for three months while this is completed.

A spokesman for the Department of Transport confirmed yesterday that Minister for Transport Leo Varadkar had extended Mr Lynch’s contract.

However, he said Dr Lynch will be paid a reduced salary during this period. He will be paid the equivalent of €196,000 a year for the period, instead of the €235,000 he has been receiving up to now.

The spokesman also said Mr Varadkar wanted to reform the executive structure of the company and intended to remove the executive powers from the chairman’s role.

The Minister does not believe it is appropriate to combine the role of chairman and chief executive in one post, and wants to change to a structure more in line with private sector companies, he said.

Dr Lynch is also chairman of subsidiary companies Iarnród Éireann, Bus Éireann and Bus Áth Cliath, and the Minister also wishes to change this.

Dr Lynch was originally appointed as chairman of CIÉ in March 2000 and became executive chairman the following September. The last government extended his contract for a year last March.

Normally, chief executives are appointed to State companies for a set period of seven years.

Dr Lynch has a long history of working for State companies. Previously, he served as chief executive of training and employment agency Fás.

Last year, the State’s spending watchdog, the Comptroller and Auditor General, found serious problems at CIÉ, including a failure to file accounts with the Department of Transport on time.

The group’s companies receive subsidies from the taxpayer totalling €316 million every year. Group losses topped €77 million in 2009.