Progressive Democrats President Tom Parlon has announced he is quitting politics after he lost his seat in the general election.
Former Progressive Democrat TD Tom Parlon
In a statement, Mr Parlon said he would not be seeking a nomination to the Seanad and would instead be joining the Construction Industry Federation (CIF).
"I will be leaving public life to take up the position of director general of the Construction Industry Federation," Mr Parlon said.
"I would like to thank Mary Harney for placing her trust in me when she asked me to join the Progressive Democrats in 2002 and for giving me the opportunity to serve in Government as a minister of state.
"I would also like to thank the elected representatives, members, supporters and the staff of the Progressive Democrats who have been so supportive during my time in politics.
"In particular I would like to thank my friends and supporters in Laois and Offaly for their loyalty to me and the electorate for giving me the privilege to serve them for five years."
Mr Parlon's departure follows the decision by former tánaiste and minister for justice Michael McDowell to quit politics. Mr McDowell was the most high-profile PD politician to lose a seat in the election, which yielded only two TDs for the party.
One of the party's trustees, Paul Mackay, opposed the idea of going back into government with Fianna Fáil and resigned his position as a trustee last month.
Ms Harney became acting leader of the party after Mr McDowell stepped down but has ruled out returning to the position on a permanent basis. Only Ms Harney and Noel Grealish represent the party in the Dáil.
At a meeting of the party's national executive in Dublin last month it was decided to establish a five-person group to look into the leadership issue. A decision to change party rules to allow a member from outside the Dáil to become leader was deferred.
Such a decision would have cleared the way for Mr Parlon, who emerged as a front-runner, to become leader of the party.
Meanwhile, PD Senator Colm O'Gorman has reportedly indicated his interest in entering the race for the leadership of the party. Mr O'Gorman was reported this evening as saying that he wanted to reinvigorate the party.
Earlier, the Labour Party claimed Mr Parlon's appointment as director general of the CIF "gives rise to a serious potential conflict of interest" given that he was until recently the minister in charge of the Office of Public Works.
Labour's deputy leader Liz McManus said that had Mr Parlon been a senior civil servant in the OPW who had decided to resign or retire, he would have faced "severe restrictions" on taking up a senior appointment with a body such as the CIF.
"The Office of Public Works is responsible for awarding contracts for virtually all major building work undertaken by the state, including schools, Garda stations and new offices for the Government's decentralisation programme. This year it will have a budget of more than €630 million and the companies that Mr. Parlon will now be representing as director general of the CIF will be queuing up to get their share of the lucrative business," Ms McManus said.
"Surely the same restrictions that now apply to senior civil servants taking up positions where potential conflicts of interest arise, should also apply to departing government ministers.
There is a generous package of financial compensation for ministers and deputies who lose their seats, which is designed to give them some time and space to adjust to life outside the Dáil and to find another appropriate position."
Ms McManus said the appointment "raises very serious questions".
"It is now time that former ministers were subject to the same standards as resigning or retiring civil servants," she added.
Sinn Féin's housing spokesman Arthur Morgan said the move demonstrated the necessity for post-service restrictions on former government ministers and senior civil servants.
"The influence of the construction industry over the Government has long been a cause of major concern. This is recognised as one of the key factors behind the Government's failure to tackle the escalation of house prices over the last decade despite the impact price increases were having on ordinary people trying to secure homes," he said.
"Appointments such as Parlon's will make the public even more cynical about the nature of relationship between the Government parties and the construction industry."