Although a Fas spokesperson said the surprise extension had nothing to do with its planned move to Birr, the fact that the state jobs agency is still "centralising" staff suggests that it will not meet its deadline for the transfer to the location in Offaly in just 18 months' time.

Fas had been leasing the floor to Citibank, which recently told the agency that it could have it back.

It will be used for emergency back-up location for the Fas information technology system.

Fas has already been at the heart of a major decentralisation dispute with Siptu, the trade union which represents the agency's staff.

Siptu resisted management's decision that any Fas staff applying for promotion must first agree to make the move to the midlands town.

Earlier this year, the Labour Court backed the staff 's objections and, in a major blow to the government's decentralisation plans, ordered the 'Birr clause' to be removed from Fas promotion applications.

Just before the general election, former minister of state for finance, Tom Parlon, provoked controversy when he hastily arranged the formal opening of the temporary Fas offices in Birr, which are in his constituency.

Just 12 of the planned 400 Fas staff were in situ at the time.

Over 1m was spent kitting out the temporary offices in Birr for the ceremony.

Despite Parlon's efforts to highlight the Fas move to Birr, he failed to regain his seat and later quit politics. He is now director of the builders' lobby group, the CIF.

Twenty staff are now in place in Birr, with a further 20 expected to move down before the end of the year.

Overall, the latest report on decentralisation shows that 1,300 decentralised public servants are sitting behind their desks in 20 locations.

The government target was that all 10,900 public servants be moved by end of 2006 to over 50 locations.

"While I am satisfied with the progress reported so far, I am anxious to ensure that the momentum of the programme is maintained and developed, " the Tanaiste and Minister for Finance, Brian Cowen, told the Dail recently.