The Tanaiste may seek Cabinet approval for a merger between the Irish Trade Board (ITB) and Forbairt before Christmas after an examination of the State agencies highlighted overlaps in their functions.
The findings of a group appointed by the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, in September are understood to have strengthened the case for a merger.
They identified a multiplicity of schemes where the operations of the two industrial support agencies overlap.
The Irish Times has learned that the review group, which includes Department officials, Mr Seamus McKenna and Mr John Walsh, and Mr John Travers, chief executive of Forfas, has also recommended that the industrial training division of as FAS should be transferred to the enlarged agency.
The review of all the State's industrial support agencies is part of an ongoing process with its findings in relation to Forbairt and the ITB expected to be circulated to Department officials shortly.
A series of consultations will also begin soon between officials and the agencies' senior officials.
A merger of the two agencies would require Cabinet approval and the Tanaiste is expected to move quickly.
Business lobby groups such as the Irish Small and Medium Enterprises Association have vociferously lobbied for the creation of a single industrial support agency to provide for the needs of Irish businesses.
The Tanaiste will address ISME's annual conference in Killarney today while Forbairt chief executive, Mr Dan Flinter and ITB chief executive, Mr Oliver Tattan will also be speaking to delegates.
Forbairt is the bigger of the two agencies and is charged with supporting the needs of indigenous companies. It has four units - a technology unit, a science and innovation division, a business development unit and an investment policy section.
Industry sources have suggested that there is currently some overlap between Fobairt's business development unit and the functions carried out by the trade board that could fit together relatively easily. The trade board chairman, Mr Sean Murray, has, however, publicly dismissed speculation of a possible merger arguing that the agency should remain independent.
Between them, the two agencies employ around 1,000 people and the merger is expected to lead to some job losses over time. Forbairt has a staff of around 670 people with up to a further 250 employed at the trade board. Most of the redundancies are likely to be sought through a voluntary severance package on a phased basis.
Forbairt staff are divided between three buildings in Dublin and eight regional offices. The trade board is headquartered in Sandymount in Dublin but also has regional offices in broadly the same locations as Forbairt.
The review follows the decision by the Fianna Fail/Progressive Democrat coalition to move the trade portfolio back into the Department of Enterprise and Employment to create a more integrated system of support for company development. Meanwhile, the Irish Trade Board yesterday forecast further strong growth in exports from Irish companies involved in supplying raw materials for international companies. Mr Tattan said the business should double to more than £1 billion by the year 2000 under its global sourcing programme.
