TÁNAISTE MARY Coughlan has described as "scurrilous" a question from Fine Gael enterprise spokesman Leo Varadkar about whether she had been lobbied in the appointment process for the selection of the chairman of Enterprise Ireland.

Defending the selection of Hugh Cooney as chairman of the State agency, Ms Coughlan said he was "eminently qualified and suitable for his new position", and she accused Mr Varadkar of making "an inference to win a populist vote".

"That the man made a small contribution to a party in a personal capacity, which he was more than entitled to do, in no way influenced anyone. I did not know of the contribution. It is scurrilous of Deputy Varadkar to imply that there was any lobbying for the position."

During enterprise, trade and employment questions, Mr Varadkar said "someone should not be barred from holding office because they contributed funds to Fianna Fáil, but it creates questions among the public. Was any effort, direct or indirect, made by the Taoiseach to lobby the Tánaiste on this appointment?"

The Dublin West TD suggested that it would be "more appropriate for such decisions to be analysed by the appropriate committee, as is the case in the US and elsewhere".

Pointing to legislation that Fine Gael had drafted on this issue, he asked: "Does the Tánaiste agree that this provision would remove some concerns about contributors of Fianna Fáil being appointed to important offices?"

Ms Coughlan said, however, that Mr Varadkar's views were a "disgrace" and that "he obviously does not know the man".

"Following the retirement of the previous chairman, I took considerable time to ensure that the next appointee would give the board the necessary direction and support. He has given both.

"Perhaps the deputy might revert to the fact that his government appointed a contributor, Mr Lynch, with whom I have worked and who is eminently qualified to sit on a board. If someone makes a contribution to a political party or a local cumann or branch, should they be barred from participating on a board?"

Mr Varadkar replied: "I specifically stated that it should not be a bar."

Ms Coughlan added: "The Minister for Finance had no hesitation in giving his consent to Mr Cooney's appointment. I am pleased with Mr Cooney's appointment and I am satisfied that he is eminently qualified and suitable for his new position."

Mr Cooney was well known by many TDs, had "significant capabilities and is someone who knows what is occurring in the country".