IBEC, the employers organisation, in its first detailed statement on the Government's decision to establish a single agency to replace Forbairt, the Trade Board and part of Fas, has welcomed the decision.

However, the organisation is seeking a meeting the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, to discuss a number of issues which it feels ought to be addressed before the new agency, which is to use the working name, Enterprise Ireland, is launched in July.

IBEC, following consultations with member firms and Government officials, believes the Government needs to clear up possible confusion which might exist over what firms may be clients of the new agency. "A useful criteria might be the overall level of business functions carried out in Ireland, rather than the nationality of ownership of the firm," the organisation said in a statement.

It also said targeted market support must remain within the new agency, IBEC said. Industry would be most concerned if there was any weakening of state support for exporters, particularly small firms and those starting up.

"The time is right for greater involvement by the private sector in the provision of national support structure for industry. A number of activities of the existing Forbairt and the Trade Board could be operated very effectively by the private sector." These areas, IBEC says, include environmental services, publishing, trade missions, trade fairs and certain aspects of testing. IBEC is encouraging the Government to set up a working group to see how progress could be made.

Other issues which IBEC believes require clarification include the role of the new agency with regard to the food industry, regional development agencies, training, and the agency's investment policy.