The Minister for Public Enterprise expressed confidence that the Government's flotation of Telecom Eireann would go ahead as scheduled.
Ms O'Rourke said that it was "still very much on target for the middle of the year and the new board will drive that process forward".
She said she was glad that Mr Ray MacSharry had agreed to be chairman and steer the company through the remainder of the process, leading it into the new era as a publicly-quoted company. "I am satisfied that the preparations for the forthcoming flotation are well in hand, and I am confident that the process will be copper-fastened by this important appointment."
She said Mr Brian Thompson, who resigned as chairman, had made a substantial contribution during his tenure. "While I am disappointed that he is not in a position to continue in this role, I would like to wish him every success in his new post."
On the resignation of Mr Ron Bolger as vice-chairman, the Minister said: "It is regrettable that he has chosen to resign from the board. He has served Telecom Eireann well as a director and as a chairman and I wish to thank him for this contribution."
The Fine Gael spokesman on public enterprise, Mr Ivan Yates, suggested to the Minister that it was imprudent to appoint Mr Thompson, when "he could and did so quickly jump ship".
Ms O'Rourke said that she had never used the term "jump ship". "He gave two months of his time to Telecom, and I understand from worker-representatives and other directors that during that period he did enormous planning and strategic work on the board. That is generally recognised. One would not expect a man aged 58 or 59, with his experience, to refuse an offer of the magnitude made . . . "
When the Labour spokesman, Mr Emmet Stagg, challenged Ms O'Rourke to say what deal Mr Thompson had, and suggested that she postpone the flotation, she replied: "That is not possible. We are certainly not going to postpone the flotation. Since this happened last weekend, the advisers have told me daily and emphatically that the flotation is on course, that the work is proceeding and that it is hoped the vision and strategy we have laid out will succeed.
"I offered no deal to Brian Thompson. He was offered £7,500 and a three-year tenure. If the deputy is implying that I had some secret under-the-counter arrangement with him, he is incorrect."
Earlier, Mr Yates said that the issues involved were of very serious public interest. The resignation of Mr Thompson, so soon after his appointment, raised serious questions. "Does Mr MacSharry's appointment meet the criteria the Minister set in terms of global telecommunications experience? It seems that it is reasonable to conclude that Mr Bolger's actions showed he was not consulted about Mr MacSharry's appointment.
"My understanding from Mr Bolger is that he resigned as managing partner of KPMG in 1995 to devote his full energies to his chairmanship of Telecom Eireann. He was appointed by Deputy Brian Cowen originally and was reappointed by a non-Fianna Fail administration, so he is an apolitical figure. His record was impeccable and he, perhaps, deserved consideration as regards Mr MacSharry's appointment."
Mr Yates said that Mr MacSharry did not meet the criterion set out by the Minister. "Therefore, his appointment was a hasty decision and more to do with his political CV."
Mr Yates said that another member of the board, Mr Paul McKay, had said that Mr MacSharry was the wrong person to appoint. "He is, as I understand it, the Tanaiste's nominee, so what is his position on the board?"
Mr Stagg said it was now clear "that the old-fashioned money-grubbing we associate with American capitalists was very evident in the character of Mr Thompson and that he was indeed no ragged-trousered philanthropist who wanted to give public service for £7,500 a year, less than the amount he would get on the dole. That was not the reason he took the job.
"Mr Thompson took the job because there was something on offer and there was a deal which he would get to do the job. I want to find out what the deal was. Obviously, the deal he got from the American company was better than what he got here," he said.
Mr Trevor Sargent (Green Party, Dublin North) said many people were concerned about the issue of sensitive information being passed to the private sector.