The succession race for the post of second secretary at the Department of Finance is on as Mr Michael Tutty has served his last day in Merrion Street and will soon head for the European Investment Bank in Luxembourg.

His job as chief architect and overseer of the budget is up for grabs and several senior civil servants are competing for it. This is a crucial time in the Department as the budget strategy begins to take shape. The job is likely to be filled quickly as there are few in the Department's tax strategy group with much direct experience in the budget strategy area.

The favourites are thought to be Mr David Doyle, who spent many years in the budget division and is now in the finance division, and Mr Donal MacNally, who has recently left the budget division for public expenditure.

However, Mr Cathal O'Loughlin, in the budget division, may be more senior and has substantial experience in the IMF and elsewhere but little directly in taxation. It is not clear if he will apply for the job.

Until the new man is appointed - and it is almost certain it will be a man - the tax side is being headed by Ms Bridget McManus who returned in July to the department from Arts, Culture and the Gaeltacht. Despite an excellent reputation, it is not thought she has been in the job long enough to seek a promotion.

Even at the level below that, there are few with long-standing experience, particularly in personal taxation and tax credits. Mr Tutty's job was advertised earlier this week and candidates will be interviewed by the higher level appointments commission over the coming weeks. The final recommendation should be with the Cabinet by the end of the month.

A former secretary general of the Department of Finance, Mr Paddy Mullarkey, has been appointed chairman of the board of directors of the economic and strategic consultancy, Indecon (Ireland).