Labour calls on Coughlan to consider position

The Labour Party says the Tánaiste, Mary Coughlan, should consider her position as a result of her handling of the Rody Molloy affair.

The Oireachtas Public Accounts Committee yesterday heard details of a €1m golden handshake given to the former head of FAS when he resigned last November.

He stepped down amid growing controversy over the level of expenses claimed by FAS officials while he was in charge of the state training agency.

The PAC heard yesterday that Mr Molloy threatened legal action if he was not given a good pay-off and Ms Coughlan signed off on the deal without taking legal advice.

Labour TD Roisin Shortall says the minister has known about the problems in FAS for almost two years, but still agreed to give Mr Molloy more than €1m of taxpayers' money.