The Tanaiste, Ms Harney, has set up a review group to examine the future of An Bord Trachtala and Forbairt. Among the options to be considered will be a merger of the two organisations. The group is headed by Forfas chief executive, Mr John Travers, and also includes two senior officials from her Department of Enterprise, Trade and Employment, Mr John Walsh and Mr Michael McKenna. The three men are expected to report back shortly to the Minister.

A spokesman for the Tanaiste said Ms Harney had "an open mind" on the matters. "A merger of the Irish Trade Board and Forbairt is an option but so also is leaving things alone," he added.

The review group has just recently begun its examination of the two State agencies operated by the Department of Enterprise, Trade and Employment and could report back by the end of the month. Meanwhile, the Tanaiste yesterday met directors of the Irish Trade Board, when she attended a scheduled board meeting at its Dublin offices. Ms Harney is also due to meet the board's chief executive, Mr Oliver Tattan and chairman, Mr Sean Murray, shortly to discuss any proposals to streamline the agency's operations.

Last week, Mr Murray publicly dismissed speculation that the trade board might be merged with Forbairt, arguing that the agency should remain independent. The Irish Exporters' Association has also called for the trade board to be maintained as an independent agency while the Irish Small and Medium Enterprises Association has suggested it should be privatised.

The latest review is expected to focus particularly on the operations of the trade board, an area which has not been examined by previous administrations for some years.

Industry sources believe the review is, in essence, a "revisiting" of the 1992 Culliton Report. This report led to the formation of Forbairt and also proposed that the new agency should absorb the trade board's operations. This, however, was never implemented.

Government sources insist the review is a pre-requisite for the implementation of aspects of the Programme for Government, which contains plans to streamline State enterprises in a bid to increase competitiveness, create jobs and boost exports. The review is also seen as a logical step, given the decision by the Government to move the trade portfolio back under the wing of the Department of Enterprise and Employment. Speaking shortly after her appointment in the Dail, the Tanaiste said that the inclusion of trade and marketing under her Department provided the basis of a more integrated system of support for company development. In that context, she would consider whether changes in agency structures were required, she said.

Meanwhile, Ms Margo Monaghan, principal officer in the Department of Enterprise, Trade and Employment, has been appointed as a director of the Irish Trade Board. She is head of the small business and services section in the Department and is the first civil servant to be appointed to the board since Ms Margaret Hayes retired some years ago.