IN his affidavit read to the Court, Mr O'Leary said that on April 25th, 1995, The Minister for Transport, Mr Lowry, asked Mr O'Leary to come into his office, which he did. The secretary of the Department, Mr John Loughrey, was also present, according to Mr O'Leary's affidavit.

The Minister said "Before I start, I want you to know that what I am about to say is no reflection on your integrity or your ability as chairman and/or director of a State company. As you know, the Government is looking closely to all semi states and I hope the Government will have your cooperation when it comes to CIE." Mr O'Leary replied that the Government would always have his co-operation.

The affidavit went on "The Minister then stated `It is the Government's intention to revert back to the old system and to appoint a full time executive chairman, the same as Paul Conlon." Mr Conlon formerly held the position of chairman and chief executive chairman of CIE.

Mr O'Leary asked the Minister if that meant he was no longer a member of the board. The Minister replied "I don't think there are any vacancies." He (Minister) then turned to Mr Loughrey and said "Are there?" Mr Loughrey replied "No, there are not. There is a full board and I don't think you can continue anyway. That would be impossible."

Mr O'Leary asked the Minister "When is all this due to happen?" The Minister replied "Later on this morning at Cabinet meeting. The media has been asking a lot of questions in the last few days and we have to give them an answer. The secretary of the Department and/or myself will be in touch with you before the close of business today to let you know what is happening."

Mr O'Leary's affidavit said that later that day Mr Loughrey sent him a faxed letter thanking him for his agreement to resign.

"I say that the suggestion that I resigned was inaccurate and I sent a letter back to the Minister which emphasised that I did not resign and that my contract was in effect terminated by the Minister prematurely," Mr O'Leary said.