The directors of the Irish Productivity Centre will meet in the coming weeks to finalise an orderly wind-down of the human resources consultancy, which has ceased trading after more than 40 years in business.

Jointly operated by Ibec and Ictu, the centre closed its doors quietly at the start of the year due to "unsustainable losses".

Long known for its interventions in industrial disputes, the business had been in serious decline since the withdrawal of Exchequer funding in 1998.

The development of the partnership process was also instrumental in the falling demand for the centre's services. These included dispute resolution and consultancy services on inclusive change, performance management and benchmarking.

While news of the shut-down was well-known in the industrial relations community, neither Ibec nor Ictu publicised the fact when the centre's board decided on closure at a board meeting last November.

The most recent accounts for the Irish Productivity Centre company, for 2003, make it clear that the business was in trouble.

Turnover fell to €1.76 million in 2003 from €1.95 million, while the overall deficit rose to €93,166 from €59,633.

The centre, in its operations review, stated that 2003 was "yet again a challenging year" because of the changing nature of the business and increased competition.

"It will be necessary to change our approach and to re-examine our cost base. This has been done successfully before and will be necessary to do so again. The continued support of the social partners and staff will be vital through this transition."

However, one source told The Irish Times that the centre's council concluded last November that it would not be possible to draw up a viable business plan for 2005.

Competition from sole-trader consultants was blamed for the decline in the business.