The Department of Finance is hiring economists from other areas of the public service, such as the National Treasury Management Agency. The appointments allow the Department to hire necessary staff on short-term contracts and at higher salaries. At least two people are being seconded to the Department from the Central Bank and the National Treasury Management Agency (NTMA).

According to the Department spokesman, there is a high level of economic expertise in the Department but there may be some supplementing of resources in specific areas. "One area where the Department is expanding its range of activities is in long-term issues such as pension costs and ageing population and so on."

He added that the Department's annual economic review and outlook would be published on time this month and up to the usual standard.

According to sources, the NTMA is currently in the process of hiring an economist who will then be seconded to the Department. This allows the person to be paid the higher salary pertaining in the NTMA than the rigid conditions in the Civil Service would allow and to be taken on for a fixed period.

NTMA pay scales which are not attached to the Civil Service are generally higher. However, those on secondment will not be able to apply for promotional opportunities within the Department and thus should not create resentment among existing staff.

Nevertheless, some staff may feel that the position should have been advertised as new positions open up promotion opportunities. Another economist has been seconded from the Central Bank and is already working in the Department.

The Department, like many others, is suffering from staff shortages as the labour market tightens across the economy. Some observers are concerned that if the practice were to become widespread, it could price other public sector bodies in need of economists out of the market. According to the Department there are currently nine people either studying for a master's degree or who already have one in the key budget and economic division.

This contrasts markedly with the Central Bank which has been hiring economists in recent years. It now has some 46 professional economists employed, with 24 still full-time in the economics area, a few who are senior managers and some on special leave to the European Central Bank. The Bank defines economists as people with a postgraduate degree in economics, who have worked in the area. One of its recruitment problems is its reliance on the Civil Service Commission. Economists can only join at administrative officer level, one of the lower paid grades. The Central Bank and the NTMA, in contrast, can recruit above entry level.