THE TAOISEACH defended remarks he made about Rody Molloy when he resigned as chief executive of Fás.

He was responding to Fine Gael leader Enda Kenny, who recalled that when Mr Molloy resigned, the Taoiseach had said he was a person he held in the highest regard and whose integrity he would defend at all times.

Brian Cowen replied: “The comments I made in relation to Mr Molloy, at any time, were based on my own knowledge of the situation and the person. . . That’s a fact . . . that I made those comments at that time . . . That was my belief at that time . . . And I don’t see any evidence to the the contrary, at the moment, in relation to it.”

When heckled by the Opposition, Mr Cowen said he did “not go around targeting everyone’s integrity . . . because, in fact, on the day in question, Deputy Kenny said he was not challenging anyone’s integrity . . . when the resignation took place”. He added he did not want to get into “personalising it in that way”.

Mr Cowen said that there had been a controversy regarding travel arrangements. “It was regarded as in the best interests of the organisation that Mr Molloy would move on,” he added.

That was facilitated, said Mr Cowen, as a result of discussions, initially between the board chairman and himself, which would be submitted to the Department of Enterprise, Trade and Employment and subsequently approved by the Department of Finance.

“Those arrangements were agreed under the provisions of the Labour Services Act 1987, which cover director generals’ remuneration and superannuation,” he added.

Mr Cowen said securing a speedy departure “in a non-litigious manner was considered to be in the best interests of the Fás organisation, its clients and the taxpayer and that was the basis on which his departure was negotiated and effected”.

Mr Kenny asked if Mr Molloy had threatened legal action before stepping down as director general.

“If he did not threaten legal action and was retiring, why then did his package amount to a golden handshake of over €1 million on top of his pension?” he added.

“Given the fact that I met workers at Waterford Crystal during the Lisbon campaign, who worked for 40 years and have no pension . . . and made the point about the gulf of anger out there on the streets.”

He added that the Taoiseach had overruled Tánaiste Mary Coughlan when she was about to issue a press release expressing full confidence in the board of Fás.

Mr Cowen insisted there was no difference between what he and the secretary general of the Department of Enterprise, Trade and Employment had to say about the issue.

“There was always a risk of action . . . I am not saying action was threatened,” he said.

Mr Cowen said he had nothing in mind but the interests of ensuring that the truth was known about the issue.

Mr Kenny said: “You would get thousands of people to line up for a speedy departure if you gave them a million euro golden handshake on top of their pension.”

He added that the car Mr Molloy was allowed to keep had not been mentioned until afterwards.