The work of merging Forbairt, the Trade Board and a part of Fas is to begin in earnest next week, with the first meeting of a special implentation group who will oversee the task. The group, chaired by the new Forbairt chairman, Mr Pat Molloy, will manage the merger of the agencies into one new company development agency with responsibilty for the development of indigenous industry. The group will hold its first meeting next Wednesday and will meet regularly thereafter. Meanwhile, the Department of Enterprise, Trade and Employment is working on legislation to allow the creation of the new agency, which is due to be published before the summer. The deadline for merger has been set as July 1st, by the Tanaiste, Ms Harney. It will merge Forbairt, the Trade Board and the part of Fas which provides training services to companies.

Mr Molloy's appointment as chairman of Forbairt means he is also chairman-elect of the new body, which will be a "superagency" offering a range of services to Irish industry. Among the issues which the implementation group will have to tackle is how to manage the merger of the staff of the two organisations, which will involve ongoing consultations with their trade unions.

The group will also have to decide the way that the new agency will deliver services and how the various offices of Forbairt and the Trade Board will be organised around the State. It will also have to decide on a mechanism for appointing the chief executive and other senior executives of the new agency. Mr Molloy (60), has recently retired as chief executive of Bank of Ireland, after a successful term in office. He has also been appointed as non-executive director of the Kingspan Group and of CRH.