THE legality of the board of a semi state company removing its managing director was challenged by Mr Brian Cowen (FF, Laois Offaly) when he raised the Bord na Mona crisis.
Asking how it was intended to comply with the provisions of, the Turf Development Act, 1946, he said that if a person was removed from a board, there was a statutory requirement to place the matter and the reasons for the removal before the Houses of the Oireachtas. The statutory provision was that it was at the absolute discretion of the Government, and not the board, to remove or to hire a chief executive of a semi state company.
Mr Bruton said he would not enter into a discussion about, the interpretation of the Act. "I have no reason to dispute what he is saying, but I am not going to engage in a discussion with him about it. I think that is a matter for others."
He added that the Government, in all its actions, had complied with all its statutory obligations. He said the board of the company was the appropriate body to consider such matters in the first instance.