The Department of Health has confirmed that it has received a "proposal" from the Voluntary Health Insurance (VHI) concerning the appointment of National Lottery chairman, Mr Ray Bates, as its new chief executive.
The VHI wants to pay Mr Bates a package worth £135,000 plus expenses. A spokesman for the department said last night that it was studying the proposal, which breaches the current guidelines on semi-state pay.
It is understood that, although board members knew this when making the recommendation, some felt the Government would have to move soon on the issue of pay for senior executives.
The appointment will have to be approved by the Minister for Health, Mr Cowen, who would then have it formally agreed by Government. If the pay element breaches the Gleeson guidelines, it has to be sanctioned by the Minister for Finance, Mr McCreevy. It is thought unlikely the Minister would sanction it.
Several other posts are due for renewal shortly, including the post of chief executive of Aer Rianta, the state airports operator. The current chief executive, Mr Derek Keogh steps down at the end of the year and interviews for his replacement have taken place.
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