THE STATE’S most senior civil servant, Dermot McCarthy, has been asked by the Government to postpone his retirement as the search for his successor continues.
Mr McCarthy informed colleagues at the beginning of April of his intention to step down as secretary general of the Department of the Taoiseach as part of sweeping changes at the top of the Civil Service.
He also announced the Government had decided to create a new post of second secretary general in the Department of the Taoiseach to co-ordinate EU policy and support the Economic Management Council established by the Coalition.
The Government’s decision to ask Mr McCarthy to postpone his retirement until later in the summer indicates that agreement has still not been reached about his successor or on the post of second secretary general at the department.
There had been speculation in the Civil Service that at least one of the new posts, and possibly both, might go to senior figures in the Department of Foreign Affairs but the delay indicates that the Government is having difficulty arriving at a decision.
These crucial positions are filled directly by the Government of the day and are not subject to approval by the Top Level Appointments Commission.
In an e-mail to senior civil servants on April 8th, Mr McCarthy announced the search for his successor would begin immediately. He sought expressions of interest from colleagues across the Civil Service for the post.
He also sought expressions of interest for the second secretary general post in the Taoiseach’s department and the position of secretary general of the new Department of Public Expenditure and Reform.
The post of secretary general at Public Expenditure and Reform has since been filled by Robert Watt but not the two positions at the Taoiseach’s department.
It is understood the Government will give further consideration to the position over the summer and Mr McCarthy will remain in place until his successor has been appointed.
Mr McCarthy has been the most powerful civil servant in the country for a decade and was centrally involved in social partnership. He was appointed secretary to the government in January 2000 and combined that role with secretary to the Department of the Taoiseach in July 2001.
The Government at its meeting yesterday decided to establish a Fiscal Advisory Council by the end of next week. A pledge to establish the body is contained in the programme for government and it also features in the EU-IMF programme.
The council’s function will include identifying and advising the Government on cyclical fiscal policies and structural deficits.
It will focus on the need to maintain an appropriate and effective tax base.