Under the terms of the Central Bank Act, 1942, the Governor of the Central Bank is appointed by the President on the advice of the Government for a term of seven years. The current Governor, Mr. Maurice O'Connell, informed me of his intention to retire with effect from 10 March 2002. Following this, on 30 January the Government considered a range of possible candidates to succeed Mr. O'Connell and, in the event, decided to request the President to appoint Mr. John Hurley, current Secretary General of the Department of Finance, as Governor of the Central Bank with effect from 11 March 2002.
The Government's deliberations in this matter are confidential and I do not propose to say which other candidates, apart from Mr. Hurley, were considered for appointment. It is true that the post of Governor has traditionally been held by former officials of the Department of Finance. It will be agreed that the country has been well served by these individuals who, in their terms as Governor, have contributed to the high reputation the Central Bank enjoys at home and abroad, especially as a regulatory authority in the financial services area.
It is essential that the post is held by a person of integrity with a proven track record of good management and interpersonal skills, familiarity with the area and with the intellectual capacity to serve, ex officio, as a member of the governing council of the European Central Bank. Viewed in this context, it can be readily appreciated that the post of Secretary General of the Department of Finance is an excellent and appropriate background for a Governor to possess.
As regards the question of independence, the governorship of the Central Bank is protected at a number of different levels by a legal framework that ensures independence. This independence is traditionally jealously guarded by Governors and protected by the Maastricht Treaty. The Government must also, in appointing a governor, take full account of the potential appointees and their personal ability to assert that independence. Clearly, the Government is happy with its decision in the current case. Future cases are a matter for future Governments.