The board of FAS, the State training agency, will put in train arrangements to appoint a new director general. The present incumbent, Mr John Lynch, is expected to resign within three to four months to devote himself to his new position as chairman of CIE.

According to board sources, outside consultants will draw up selection procedures for the £80,000 (€101,000) a year position and recruitment ads are likely to be placed in the media within weeks. Strong internal competition for the job is expected.

There are five assistant director generals, at least some of whom will apply. The front runners are likely to be Mr Donal Sands, responsible for finance and budgets, and Mr Martin Lynch, responsible for the regions.

It is thought that civil servants on the board from the Department of Enterprise, Trade and Employment may also apply. The senior civil servant on the board is Mr Seamus O'Morain, assistant secretary with responsibility for labour force developments. The appointment of a civil servant would be seen as signalling greater direct involvement by the Department with the training agency.

Ultimately the Tanaiste and Minister responsible, Ms Harney, has last call on the appointment.

FAS administers £550 million a year providing specific skill training courses for the unemployed, improving skills in the workplace, apprenticeship training and funding for Community Employment schemes.

In the past five years it has seen its role change radically from one of trying to help more than 200,000 unemployed people find jobs through training, to simply seeking new sources of labour to service a booming economy.