The Forbairt chairwoman, Ms Eileen O'Mara Walsh, has told the Tanaiste, Ms Harney, that she wants to resign her position to allow her more time for her business interests.
And in a further signal that major changes in the state agency structure are planned, the Tanaiste has asked Ms O'Mara Walsh to stay on for a short period. Ms Harney anaiste is preparing a memorandum for Cabinet on the future of the state agencies. As previously reported, she is to seek Government approval for a merger of the two agencies, to create one organisation responsible for assisting indigenous industry. Also included in the new enlarged group will be the services to business arm of FAS, the training agency.
It is understood that the new arrangements - if approved by the Cabinet - will involve a merged agency with at least three separate wings, one looking after business development, a second in charge of export promotion and a third in charge of the science and technology brief. Ms O'Mara Walsh has business interests in the travel sector, mainly as a director of the O'Mara Travel Companies. She is also on the board of the Irish Tourist Industry Federation and Great Southern Hotels.
She is understood to have tendered her resignation recently to Ms Harney. She has held the position for four and a half years and indicated that she now wants to dedicate more time to her business interests.
However, with a decision expected shortly on the future shape of the state agencies, the Tanaiste asked her to remain on for a short period - likely to be no longer than two to three months.
The proposals for the reorganisation are expected to come to Cabinet before the end of January.
A study commissioned by Ms Harney on the services to industry is complete and the heads of the various agencies have been consulted.
The Department of Enterprise, Trade and Employment is now completing a memorandum for the Government on the subject.
The review group set up by the Tanaiste included Department officials Mr Seamus McKenna and Mr John Walsh, and Mr John Travers, the chief executive of Forfas.
It is understood to have identified a number of areas where the activities of the Trade Board and Forbairt overlapped and where streamlining will lead to a better service for Irish industry.
