Tensions within the Fine Gael party escalated over Stephen McDonagh’s anticipated appointment to lead the Strategic Housing Activation Unit without a discussion on his salary of €430,000 from Nama. Ministers expressed dissatisfaction, feeling such a significant appointment lacked proper coalition dialogue. Despite these issues, Taoiseach Micheál Martin denied that Simon Harris blocked the appointment and stated that no salary discussions had occurred. With McDonagh pulling out, the leaders are exploring interim solutions, such as appointing a temporary chief executive to expedite the process for this critical housing position.
It's understood that while no specific salary was discussed, Mr Donohoe believed that Mr McDonagh's current salary of €430,000 as the boss of Nama would be too high if he was seconded to head up the Strategic Housing Activation Unit.
Fine Gael ministers privately expressed fury over the planned appointment after it was reported that Mr McDonagh would hold on to his salary. The Tánaiste and Fine Gael leader, Simon Harris, said appointments of that scale should be discussed between the two Coalition party leaders.
Taoiseach Micheál Martin rejected reports that the Tánaiste blocked Mr McDonagh's appointment, stating, "No, that's not correct," emphasizing no salary was ever discussed in relation to the position.
Mr Martin also mentioned, "The minister would have spoken to the line minister regarding the role of the NTMA and Nama and seeking permission around the secondment issue and so on."
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