McCreevy has asked bank to `expedite' nomination

The Minister for Finance, Mr McCreevy, has written to the president of the European Investment Bank to ask him to "expedite" the appointment of Mr Hugh O'Flaherty as a vice-president of the bank.

He told the Dail it was now a matter for the bank to carry through the procedures in relation to the nomination. During finance questions, the Minister gave an emphatic "Yes" when asked by Fine Gael's finance spokesman, Mr Michael Noonan, if he was proceeding with the nomination.

Mr McCreevy said "the question of a formal reaction from the bank in relation to the nomination does not arise at this stage". He was responding to Mr Noonan's question asking if the EIB indicated it would "evaluate Mr O'Flaherty's suitability for the post".

Outlining the chronological details of the nomination, the Minister said he had informally submitted Mr O'Flaherty's name to the bank on May 18th. The bank was aware "through contacts at official level with my Department of the position in regard to the High Court action" against the nomination.

He said the bank now had to carry through the procedures relating to the nomination and since he spoke in the Dail last Thursday on the issue he had "written to the president of the European bank to ask him to expedite the matter".

There was no question at this stage of a formal reaction from the bank to the nomination. "The proposal has been circulated by the bank to the board of directors and following completion of this procedure, which had been interrupted by the High Court proceedings, this matter would go to the governors who make the appointment."

Mr Noonan suggested that the board of directors would make a "value judgment on the merits of the candidate, and it's not simply a rubber-stamping procedure by the board of governors".

Mr McCreevy replied: "It's a matter for the board of governors to consider in line with their mandate." He added that it was Ireland's turn "to nominate an Irish nominee on this occasion and we put forward Mr O'Flaherty".

Asked if he was confident that Mr O'Flaherty's nomination would be accepted by the bank the Minister said he hoped "the European Investment Bank, in the appropriate timeframe, will deal with this nomination".

The Minister said Mr O'Flaherty's name had been put forward when the appointment by the "constituency" in which Ireland operated came up and it coincided with the a.g.m. of the European Investment Bank.

When Mr Noonan asked him if he still believed Mr O'Flaherty was the best candidate available to the Government, Mr McCreevy replied: "I certainly do."

Meanwhile, the Taoiseach insisted earlier that Cabinet procedures had been followed in the nomination of Mr O'Flaherty to the bank.

"In this particular instance, and in all other instances, I agree that the rules should be followed," said Mr Ahern. "They were in this instance fully and completely complied with."

The Taoiseach was replying at Question Time to the Fine Gael leader, Mr John Bruton, and the Labour leader, Mr Ruairi Quinn.

He said the thrust and intent of the Government's procedures were to ensure that its members were adequately consulted relating to proposals coming before it.

At times, he added, it could be done at the Cabinet table or by way of consultation between Ministers or in a discussion afterwards.

Mr Ahern denied Mr Bruton's assertion that this amounted to making decisions by way of "chats in corridors", adding that there had been extensive consultations undertaken by the Minister for Finance with his Cabinet colleagues on the nomination.