The Tánaiste is the Minister in charge of Foras Áiseanna Saothar, or FÁS. Any Deputy in the House can point to areas in the country, the city, the town and other places where FÁS has given very valuable assistance in the development of community facilities. That must be recognised. It is more than a year since I, along with Deputy Varadkar, raised questions in the House about activities within the FÁS organisation at senior level. Last Sunday week, the chairman of FÁS announced on RTE that the entire board would resign. When I raised this matter first the Taoiseach defended the actions of the former chief executive and, as Minister, the Tánaiste said that all matters which were in the public domain were in the past.

We hear a great deal about the Government getting matters right and value for money, seeing that targets are met and objectives are achieved and that the country is run as effectively as it should be. As Minister for Enterprise, Trade and Employment and as deputy leader of the Government, the Tánaiste presides over FÁS. She either knew these things were going on or she was complicit in them. If that is the case it is a demonstration of utter incompetence. The Tánaiste said these matters were in the past and would never happen again. The board had her full support on two occasions: in February and June. Now the board is to resign en bloc in September. Why has the board lost the confidence of the Government? Is it because of the €600,000 advertisement which was placed and never delivered? Is it about the car that was purchased which never arrived? Or is it about the €622,000 which is now the subject of a file sent to the Director of Public Prosecutions in respect of which nobody seems to know what the money was spent on or where it went? What are the reasons the board has lost the support of the Tánaiste and the Government? Regarding the Tánaiste’s previous comments, was she aware of, or complicit in, the actions that were revealed publicly over the past 12 months regarding the higher echelons of FÁS?

I refute that charge on the following basis. On the occasion of the internal audit report being made available to me, I asked the Comptroller and Auditor General to carry out a further investigation and report on this matter. The Committee of Public Accounts was carrying out an investigation and the Comptroller and Auditor General advised that he did not wish to complete the terms of reference until he heard what the committee had to say. That report was brought to my attention by the Comptroller and Auditor General. In the interim, several other actions were taken by me. First, the director general stepped down, an interim director general was appointed and, subsequently, a new director general was appointed.

That included a golden handshake.

Second, arising from the internal audit that took place, on my instruction the board was advised to take on board the Department of Finance's regulations. All those actions were taken and the board supported all actions that were necessary in the interim. Yesterday the Cabinet signed off on new legislation regarding the structures of the board. We hope this legislation will be facilitated very quickly in this House, at which stage a new structure will be put in place.

I do not accept there should be any loss of taxpayers' money. That is why the Garda is investigating two matters, one of which is with the Director of Public Prosecutions at this time. Following receipt of the Comptroller and Auditor General's report, on my instruction my Secretary General sent the report to the Garda Commissioner for further examination in case any criminal proceedings are needed.

I agree with one point Deputy Kenny made, namely, that the role of FÁS is paramount in the support and training of people in this country. Every Member of this House is more than complimentary about the work being carried out. This is a grave distraction and disappointment to those people who work on behalf of FÁS who had nothing to do with what happened in the corporate side. However, I am adamant that the work of FÁS, its board and the structures that will be set in place by this House very soon will be fit for purpose, very strategic and focused on the needs of the people here who are unemployed and in need of training.

The board was asleep.

This is another demonstration of a senior Minister in a party that has been in Government for too long. The Tánaiste missed completely the extent of anger, frustration and concern that exists among people who are very hard pressed when they see, read about and understand the profligate misspending and misuse of money in this way, after which nothing happens.

The Tánaiste mentioned the Committee of Public Accounts. There were personnel who refused to attend that committee and Deputies of this House, on all sides, including the Government's, were not in a position to ask them questions. The Tánaiste has reports of very high levels of facility being made available on credit cards and the apparent playing fast and loose with taxpayers' money. She pointed out the Garda is carrying out an investigation in this regard but it is not carrying out an investigation into the top up of the pension to the former director general, nor do I suggest it should. The Tánaiste is the person who signed off on that arrangement. What has gone wrong in the public service which does down so many fine officials in so many sectors is precisely that where targets are not met, where targets and objectives are not achieved, where it is clear there is incompetence, gross incompetence in some instances, this is rewarded. This is what causes so much anger for people across the country who are very hard-pressed to make ends meet on a daily and a weekly basis. The former director general admitted he was incorrect and admitted that mistakes were made. The Tánaiste signed off, apparently, on an extra four and a half years of pensionable service for that director general who had, I think, 35 years of service prior to that. Can the Tánaiste justify this on the basis of targets not being achieved, on the basis of incompetence and on the basis of this being admitted by a director general of a very important and massive organisation spending almost €1 billion? She is aware that if a member of the Garda Síochána steps out of line in a serious manner, his or her pension is ended. In this case as in others, the regulator included, there has been a very hefty reward for incompetence. I ask the Tánaiste to explain to the House why she, as Tánaiste and as the Minister presiding over FÁS, was in a position to sign off on an extra four and a half years' pensionable service for the former director general, in view of the incompetence and the inefficiency palpably demonstrated and the waste of public money at the very highest level.

First, the recommendations of the Committee of Public Accounts are all included in the new legislation. Second, with regard to Mr. Molloy's departure, the severance package has been in the public domain for a considerable period. I did not make the decision lightly.

Justify it.

I agreed, not on the basis of the Superannuation and Pensions Act 1963 — as purported in the public domain — rather on the basis of the Labour Services Act 1987 which provides for the terms and conditions of directors general of FÁS, including their remuneration and this may be determined by the Minister for Enterprise, Trade and Employment with the consent of the Minister for Finance——

It does not make it right.

The Minister for Finance was to blame.

The Tánaiste without interruption.

At that time, around this time last year, I thought the most appropriate action would be his speedy departure. Also, the terms of the legislation allow an entitlement of up to five eightieths to employees of non-commercial semi-State bodies where contracts are being terminated. Both the Minister for Finance and I worked within the terms of reference of that legislation, on the basis that I was of the view that the speedy departure of the director general from that organisation was appropriate. The alternative——

——was to spend taxpayers' money for the next six to nine months in the Four Courts and I thought this would not be the most appropriate action, on the basis that these matters were destroying an organisation whose role——

The Tánaiste gave him a sweetheart deal.

Did he threaten to take legal action?

——on behalf of people who are unemployed is paramount.

The Tánaiste gave him a sweetheart deal. It is Fianna Fáil cronyism.