`Wrong construction' on O'Flaherty actions

Mr Hugh O'Flaherty's mistake was that he had not anticipated the "construction" that could be put on what he did in the Sheedy affair, the Minister for Finance told the Dail. Mr McCreevy said Mr O'Flaherty only became involved in the case "in a spirit of humanitarian interest", and for that mistake he paid a "very high price".

The Minister said this new position would give the former Supreme Court judge a "second chance" which he believed every individual should afford his or her neighbour, "who has admitted they were wrong and suffered the consequences".

Defending his nomination of Mr O'Flaherty to the role of vice- president of the European investment bank, Mr McCreevy said that when Mr O'Flaherty realised that "his seeking to remain in office as a judge was threatening to compromise the integrity of the judiciary, he did the honourable thing and resigned".

The Minister said that "for a man of Mr O'Flaherty's integrity the public humiliation suffered at the suggestion of demeaning or damaging our justice system should not be underestimated".

He also commended Mr O'Flaherty for his "public-spirited response" to the concerns being voiced by his intention to forgo his entitlement to his judicial pension for the duration of his period of office in the bank.

He said it was the former judge's "outstanding qualifications and wide legal experience which were decisive in his nomination". The controversy "that surrounded Mr O'Flaherty's departure from public office last year should not be allowed to obscure a record of long and distinguished service to his profession - 30 years of practice at the Bar and almost a decade sitting in the highest court of this State".

He was a man with an "exceptional intellect, vast experience and extensive knowledge which will be invaluable to the bank. I have not heard any serious questioning of his ability to carry out his future role within the bank in a most effective manner." He was "eminently qualified" to serve as vice-president and "on that basis alone he deserves this post".

Outlining Mr O'Flaherty's career, the Minister said he had been a barrister since 1959 and became a senior counsel in 1976 until 1990 when he was appointed a judge of the Supreme Court. During his tenure on the bench he was the author of more than 500 opinions affecting practically every area of law in every part of Irish life, Mr McCreevy said.

He was a trustee of the Trier Academy of Law in Germany since 1990 and had lectured at a number of international law schools and universities. The Minister said it was of paramount importance to choose a highly qualified person. "I am satisfied that Mr O'Flaherty is an outstanding candidate and I am convinced that he will be an excellent vice-president, serving the EIB, and this country well throughout his tenure at the bank."

Mr O'Flaherty was also staunchly defended by Mr Ben Briscoe (FF, Dublin South-Central) who was a friend of the nominated vice-president. Mr Briscoe described Mr O'Flaherty was a "most wonderful human being" whom he was happy to know.

He said that all Mr O'Flaherty had done, when stopped in Herbert Park, was to tell Mr Philip Sheedy's sister that her lawyer should look at a piece of legislation which he thought had been implemented a few years previously and which dealt with the possibility of somebody committing suicide in jail. Mr Briscoe said he mentioned it to the court registrar to look up whether that was the right piece of legislation, and that was what judges did. That was the extent of his involvement.

Mr Briscoe said Mr O'Flaherty had many colleagues at the Bar, some of whom could have spoken out on his behalf and the Fianna Fail TD was disappointed that they did not. Mr Briscoe also felt very strongly that the then chief Justice, Mr Liam Hamilton, did not envisage that his report would result in the resignation of Mr O'Flaherty and that Mr Hamilton was "taken aback at the savagery of the attack by the Opposition".

The Dublin South-Central TD hit out at the media coverage of the controversy and said that when historians looked back on this era they would talk of the McCarthyism, and "tyranny of the media" whom he said "have us all tearing each other apart".

Mr McCreevy assured the House that before making the nomination, he had, "in the normal way, consulted extensively with my colleagues in Government".

He said the governors of the bank from the two EU member State which along with Ireland took turns to nominate a vice-president to the bank - Denmark and Greece had also been consulted. "Mr O'Flaherty has been put forward as our common candidate for the vacancy that will arise when the term of the current Greek Vice-president expires on 5th June."

The Minister devoted much of his six-page Dail speech to outlining the role and function of the European Investment Bank. Members of the bank were the member states of the EU who had all subscribed to the bank's capital. It was set up as the EU's financing institution to contribute through long-term loans, towards the integration, balanced development and economic and social cohesion of member states.

He said an understanding of the background to the bank would "help the House to appreciate the importance of the job, and why I felt we needed to choose a person of the highest calibre for such an appointment, and why I felt that Mr O'Flaherty was suitable to fill such an important post".