The post-Celtic Tiger era claimed its first high-profile victim in Dublin today when the chief of a government quango was forced to resign over excessive expense claims, including hundreds of thousands of pounds spent on First Class trans-Atlantic flights, rounds of golf and visits to Florida nail bars.

It is a sign of just how rapidly that Ireland has sunk into a recession mentality that the crime for which Rody Molloy, director general of Fás, seems to have been convicted was a robust justification of his swanky lifestyle.

Only a year ago the revelation, published in a Dublin Sunday newspaper at the weekend, that the state body which provides training and employment skills spent €643,000 over four years on trans-Atlantic travel would have hardly raised eyebrows.

Mr Molloy, who has been in post for the last eight years, gave a critical interview on RTE Radio in which he seemed to display amnesia about the parlous state of the economy.

Responding to questioning over the cost of flights for him and other senior Fás executives and their wives to travel to the USA, Mr Molloy said:”Yes, it is hellishly expensive, but any time that a spouse travelled it was because there was reason to do with the activities that were involved.

“In my own case when my spouse would be with me . . . any time she has been with me there was no additional expense to Fás because I traded down my travel entitlement to allow her to travel . . . so it comes in at less expense to the organisation."

"I'm entitled to travel first class," Mr Molloy said. Asked to confirm that he had traded down his first-class ticket for two business-class tickets, he responded: "In one instance that's what happened, yeah."

He also described expenses on golf and beauty treatments as insignificant.

The interview triggered a public outpouring of anger over profligacy with taxpayers’ money, just as the government is being forced to make deep cuts in public spending.

When the row first broke out the Taoiseach Brian Cowen defended Mr Molloy, saying he had every confidence in him and calling him “an excellent public servant”.

Today Mr Cowen paid further tribute to the Fás chief. "That confidence was justified," Mr Cowen told the Dail, the Irish Parliament. "He is an honourable public servant and he did the honourable thing on behalf of the organisation that he led."

The agency, which has a €1 billion annual budget, is already at the centre of an inquiry by the Dail Public Accounts Committee over spending irregularities.

Enda Kenny, the opposition Fine Gael leader, asked for assurances that Mr Molloy would receive no severance payments or "golden handshakes" until he co-operates fully with the inquiry.

Mr Kenny also said members of the Fás Board should consider their future. "This organisation has a very bad name now," he said.

"It's done some brilliant work over the years. The position now in my view is that you should ask the board to consider their positions."

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