A new State agency, which will incorporate the development, training and export activities of Forbairt, FAS and the Irish Trade Board, will be in operation by the summer, the Tanaiste has said.

Speaking at the trade board's last annual review and outlook presentation yesterday - at which the body revealed that exports by Irish companies had grown by 16 per cent last year to a record £8 billion - Ms Harney said a working group is currently striving to meet this target. "I look forward when I get away from tribunals, inquiries, bank charges and interest overloading to taking new legislation through the Dail after Easter."

The Tanaiste also moved to reassure the chairman and directors of the trade board that the new agency would continue to have a primary focus on the marketing and promotion of needs of Irish exporters. "The new agency will have a very clear and explicit Ministerial statement - to help Irish controlled companies develop sustainable competitive advantage leading to increased sales, exports and employment".

Chairman, Mr Sean Murray, said the export performance showed that that trade board was going out "on the highest point ever". He wished the new agency every success. He admitted that some board members had had a "difference of opinion" on the direction in which the State agency should be moving, but said they had made their recommendations and hoped these would be assessed on their merits. Such tensions, he said, were "very healthy" and these views had a positive affect on opening the debate, influencing the outcome and highlighting the need for continued focus on the overseas markets for Irish companies.

Irish exports grew strongly across all markets last year, with exports to continental Europe up by 13 per cent to £2.8 million. In Britain, exports increased by 16 per cent to £2.8 billion while sales to Northern Ireland were up by 11 per cent to £500 million. The trade board also reported good growth for Irish exporters in the US, with export sales rising by 22 per cent to £1.1 billion, making it the second biggest market for indigenous exporters.

Irish exports to Asia were also stronger, increasing by 17 per cent to £580 million. Trade board chief executive, Mr Oliver Tattan said Irish exporters to this region were not expected to be seriously affected by the confidence crisis in the region.

The Tanaiste said the new agency would be very much export-led.