THE new managing director of Bord na Mona is being paid "slightly" more than his predecessor, Dr Eddie O'Connor, who resigned from the post following controversy over his remuneration.

Mr Paddy Hughes, who was appointed to the post this week, is getting "slightly" in excess of that of Government guidelines on semi state pay for such posts, according to a Government spokesman.

Dr Eddie O'Connor agreed to resign after the board of the company found his remuneration breached Government guidelines, although Dr O'Connor did not accept that it did.

Mr Hughes, who worked in Dr O'Connor's office, is earning "a few, thousand pounds more" than the" £65,000 a year salary normally paid, for the position, according to a spokesman for the Department of Transport, Energy and Commutations.

It is understood that Mr Hughes whose appointment was announced earlier this week, was on a higher salary scale than the managing director. The spokesman said Mr Hughes could hardly be expected to, take a wage decrease.

Salaries for Bord na Mona employees was a matter for the semi-state firm, he said. The Government could only specify what the managing director should, earn.

Mr Hughes, who was previously chief operations officer at Bord na Mona, was asked to take over as acting managing director following Dr O'Connor's resignation. No interviews were held for the post, nor was it advertised.

The spokesman said that it is not mandatory to advertise such posts, although the Department had been to the forefront in recommending that they should be advertised.

However, he said, it was felt that the circumstances were exceptional and a new chief executive was needed quickly. Normally there would be a lead in time of at least six months for a new appointee, he said, but this would have taken too long.

Mr Hughes (57) is on a three year contract. He has worked in Bord na Mona for 37 years. It is claimed, that the appointment of a candidate from within Bord na Mona, may heal the divisions and Mr Hughes is said to be popular within the organisation Dr O'Connor resigned last month following a long and bitter row over this remuneration package. He always maintained he never breached expenses were audited in two separate, reports.

It was found that he had received £66,000 in unvouched expenses. He also acknowledged that a sum of £53,000 which he had claimed were business expenses, were in fact for his own use.

Dr O'Connor had agreed a deal in, confidence with the then chairman of the board, Mr Brendan Halligan. The present board had not been informed of the deal.