However, the minister said he did not discuss the controversial €292,000 salary with Mr Watt. Rather he dealt with an assistant secretary in the department and the secretary general to the Government Martin Fraser.
Mr McGrath said there was discussion about Mr Watt moving from the Department of Public Expenditure to the Department of Health as far back as November last year.
Finance Committee chair John McGuinness there was public concern about the proposed salary and said it was a “pity that transparency didn’t play a deeper role” in process of deciding the pay increase.
Mr McGrath came under fire from Government and Opposition TDs over the course of the two hour committee meeting.