Lenihan: Next Central Bank boss won't be civil servant

A decades-long practice of appointing a senior civil servant to the top job in the Central Bank is to end, the Finance Minister said today.

Brian Lenihan told an Oireachtas Committee he will carry out an international search to find a candidate with possible private sector experience to fill the governor position when John Hurley retires in coming months.

The Central Bank has had a senior civil servant at its helm since it was founded in 1943. Mr Lenihan said a well-qualified successor for Mr Hurley, who is a former secretary general of the Department of Finance, is of vital importance.

“The traditional practice that a senior public servant is appointed governor of the Central Bank will not be followed by me,” Mr Lenihan told the Finance and Public Service Committee.

Mr Lenihan said he will carry out a wide search for a suitable candidate who will be across developments in Ireland as well as across the eurozone.

A list of possible appointees will be drawn up by the Government, he added.

Mr Lenihan also said that a €630,000 golden handshake given to retired Financial Regulator Patrick Neary was what he was legally entitled to.

“The package is a package that somebody of his equivalence obtains,” he explained.

The minister told TDs and Senators that his current focus is on a sustainable two-plan for 2009 and 2010 in correcting the public finances.

“You would want to be a cross between a prophet and a soothsayer and a clairvoyant to predict what will happen after 2011,” he quipped.

Mr Lenihan also dismissed comparisons between Ireland and Iceland’s economic difficulties.

“Naturally, we have financial stress across the world but we have criticism in the UK and criticism in North America of Ireland – some of it well founded.

“But the comparison between Ireland and Iceland is a bizarre one.

“We are a direct part of the strongest currency in the world.

“Yes, it has caused us serious economic problems in terms of the sterling differentials but in terms of liquidity, it means we have a very secure banking system.”