FÁS Chairman resigns as board hold out

The chairman of FÁS, Peter McCloone, has resigned today after a meeting of directors which lasted almost seven hours.

However, the board of FÁS will not step down until Tánaiste Mary Coughlan brings in new reforms at the helm of the State training agency, they revealed tonight.

Speculation had been mounting of an en masse stand-down over a series of scandals on wasteful spending of taxpayers’ money running into millions of euro at the employment agency.

However, in a statement, the directors ruled out any more resignations ahead of Ms Coughlan’s plans to bring in a new 11-member board to replace the 17-strong team that has presided over recent controversy.

“The remaining board members confirmed their intention to stand down as part of an orderly transition to the new board,” said a Fás statement.

“In this regard, in keeping with the wishes of the Tánaiste, they indicated they will remain in office until a new board has been appointed in accordance with the enactment of the relevant legislation which is expected in November.”

In the statement, the directors praised the “leadership and hard work” of Mr McLoone as well as “the dignity and integrity he has displayed dealing with the many issues affecting the organisation during his term of office and, in particular, in the last year.”

The board also insisted it had “sought to act properly at all times” since its appointment in 2006 and that it “acted decisively to address and correct problems as they arose.”

“It believes that, in time, any objective assessment will clearly demonstrate this,” the statement added.

Recent revelations by a public spending watchdog that millions of euro was overspent by Fás bosses on advertising and promotions between 2002 and 2008 prompted Environment Minister John Gormley to demand the board resign.

However, Ms Coughlan has said the new Labour Services Amendment Bill to be brought before the Dáil next Tuesday will allow her to appoint a completely new board in time.

The legislation will also contain new provisions to make the Fás director general more accountable.