MINISTER FOR Enterprise, Trade and Employment Mary Coughlan insisted that the Fás board made the decision to allow former agency director general Rody Molloy keep his company car as part of his severance package.

She was responding to a reported contradiction between her version of events and that of former board chairman, Impact general secretary Peter McLoone.

Ms Coughlan said: “As regards the car, I was aware of the fact that the director general wished to retain the car.

“It was not within my remit to sanction that.

“That was a matter for the board. It went to the board; it was decided by the board.

“It was not part of the package of sanction between the Department of Enterprise, Trade and Employment and the Department of Finance.”

When Fine Gael leader Enda Kenny observed that Ms Coughlan knew in advance that Mr Molloy was allowed keep the car, she said: “I was aware . . . It was a matter for the board.”

Mr Kenny said a newspaper report had claimed that Mr McLoone had insisted that the board had only allowed Mr Molloy to keep his Audi A6 company car because it was negotiated in his severance agreement.

“Mr McLoone went on to say that Ms Coughlan’s officials at the Department of Enterprise, Trade and Employment were informed in advance that the issue of the car was to be dealt with by the Fás board,” Mr Kenny added.

“The Tánaiste has repeatedly refused to say whether she was aware of this in advance or not.”

He challenged Ms Coughlan to say if she had been informed in advance of the board’s decision that the car was to be left with Mr Molloy as part of his severance package.

Mr Kenny explained that he felt it was a matter of public importance, he added.