The Fine Gael Seanad candidate John McNulty says he is withdrawing from the upcoming by-election.

Mr McNulty was appointed to the board of the Irish Museum of Modern Art (IMMA), a post from which he resigned last week.

In a statement today, Mr McNulty said "I have informed the Taoiseach that under the circumstances, I am withdrawing my name and asking the Members of the Oireachtas not to vote for me in the upcoming Seanad bye-election. I would like to thank the many members of the Oireachtas who already expressed their support for me."

"I am taking this decision because I believe that to contest the election would be an ongoing distraction from the critical work of Government which is to secure Ireland’s recovery through job creation and increased investment."

"I believe the government’s economic plan is working and the country is now moving in the right direction. This is what all members of government should be focused on at all times."

"It was my hope, if elected, to support the government’s work in this regard as a member of the Oireachtas and now it is my intention to seek a Party nomination to contest the next general election."

Speaking in the Dáil this afternoon, Taoiseach Enda Kenny accepted the blame for the Fine Gael election fiasco.

It comes aftet the government unveiled a new system for appointments to state boards.

It has signed off on a new system where all positions on state boards will have to be filled by public advertisement.

It has also agreed that all people appointed to state boards will need to have experience in the sector, and complement the skills of other board members.