Irish Times in strong position, says chairman

The Irish Times "is in a very strong position but facing into a future with huge changes in technology, and most of all competition", said Mr Don Reid. Speaking after his election as non-executive chairman of The Irish Times Ltd, he said the company "has a good strong future but my predecessor [Major T.B. McDowell] took the view that this is the time for the major changes that have occurred today. Both he and Louis [Mr Louis O'Neill, chief executive and group managing director] have passed normal retirement age and given long and valuable service of immeasurable benefit for the trading position of the company."

Mr Don Reid (67), a former tax partner in leading accountancy firm Stokes Kennedy Crowley - now KPMG - has been involved with The Irish Times since 1972 as a professional adviser. He became a nonexecutive director of The Irish Times in May 1988 when he became a governor of The Irish Times Trust. The chairmanship will be part-time.

Mr Reid noted that Major McDowell had made an "absolutely outstanding contribution to the success of The Irish Times throughout almost four decades and I am delighted that his counsel will continue to be available to me". The position of managing director will be advertised within the next week. Merc Partners, the recruitment and human resources consulting firm, is to advise the company on the appointment of the new managing director who will replace Mr O'Neill, who will retire later this year. The new managing director "will be responsible to the board for the management of the company's business, subject to our existing editorial independence".

The "procedure to be adopted will adhere to the terms of the arrangement with the editorial committee, as had always been intended", he said.

Mr Reid added that the editor of The Irish Times, Mr Conor Brady, and Ms Karen Erwin, deputy group managing director, have indicated they will not be applying for the post. And he noted there was "never a question that I would become an executive chairman".

Asked about reported boardroom differences, he said that prior to his appointment yesterday it would have been "premature and wrong to make comments in advance of the board's decision and that unfortunately may have given rise to speculation about imminent changes". However, he stressed that his appointment was unanimous. Mr Reid said he is looking forward to "working closely with Louis in the coming months'.'

Asked about his involvement with Cambridge Group, the leasing company which went into receivership in 1993, he said he was a non-executive director from 1989 to the time of the receivership in 1993 and nonexecutive chairman for eight months to mid-1993. "It was a traumatic experience for all of us but I understand the receivership has gone well," he said.

Mr Brady said last night that Major McDowell's establishment of the trust and his guidance of the organisation was "a great act of public service to Ireland". He said he looked forward to working with Mr Reid and he paid tribute to Mr O'Neill, with whom he said he had co-operated closely and successfully over many years. "The company owes a great deal to his judgment and foresight", he added. Major McDowell joined The Irish Times Ltd in 1962 as vice-chairman (chief executive) and the following year he also became managing director. He was appointed chairman in 1973 and in 1974 he became a governor and founder-chairman of The Irish Times Trust.

In 1997 he resigned as chief executive and continued as full-time chairman of The Irish Times Ltd and The Irish Times Trust. His resignation yesterday was as chairman of The Irish Times Ltd and from all day-to-day activities. He remains chairman of The Irish Times Trust and a non-executive director of The Irish Times Ltd.

Mr Louis O'Neill became a director of The Irish Times Ltd in 1974 and served successively as general manager, managing director and group managing director. He became chief executive of The Irish Times Ltd on the retirement of Major McDowell from that position two years ago.