The new Enterprise Ireland agency, to be formed from the merger of Forbairt, An Bord Trachtala and parts of FAS, will be "dogged by industrial relations and staff deployment problems" the Labour Party spokesman on enterprise, trade and employment has said.

Mr Tommy Broughan said the chief executive of the new agency would spend his first months in the job sorting out redundancy packages and industrial relations problems. Staff in the agencies were completely in the dark about their future employment, he said.