Coughlan: FÁS law contained basis for pay-off

Tánaiste Mary Coughlan has said that the legal basis for the €1m golden handshake awarded to ex-FÁS boss Rody Molloy was agreed under the legislation which set up the agency.

Yesterday, the Taoiseach, Brian Cowen, said the lucrative pay-off given to Mr Molloy was in accordance with unspecified guidelines.

The Labour Party has asked for clarification of the matter, saying it can find no legislation that gives a government minister the right to top up a particularly individual's pension.

However, speaking in Dublin this morning, Ms Coughlan said: "The law is set down in the Labour Services Act and those are guidelines that are signed off by the Department of Finance".

Communications Minister Eamon Ryan, meanwhile, said he will be seeking further details from Ms Coughlan about the pay-off.

He said this morning that he was concerned about the level of remuneration in FÁS and wanted to ensure that the culture is changed.