THE government has decided not to reappoint the celebrity economist Eddie Hobbs to the board of the National Consumer Agency (NCA).

Hobbs had resigned from the body last month in protest at the fact that Celia Larkin – the former partner of
ex-taoiseach Bertie Ahern – continued to hold a position as a board member with the agency.

The government would have been in a position to reappoint Hobbs but has decided instead to leave two positions on the NCA board vacant.

The Tánaiste and Minister for Enterprise Mary Coughlan has decided that the process of winding down the body for a merger will be the "focus" instead.

The National Consumer Agency is set to be merged with the Competition Authority, as part of a cost-saving effort to cull the number of quangos.

Eddie Hobbs had been calling for Celia Larkin to step down from the NCA over a controversial €40,000 loan she was given by Irish Nationwide.

The loan – uncovered as part of investigations by the Mahon tribunal – had been personally approved by the chief executive of Irish Nationwide Michael Fingleton and raised questions about cronyism, according to Hobbs.

The Department of Enterprise has now avoided any possible flashpoint by permanently postponing the appointment of replacements for either Eddie Hobbs or Trinity law lecturer Alex Schuster, who also resigned on 1 May.

A statement said: "Insofar as the National Consumer Agency is concerned, the focus of the Tánaiste and her department is on continuing the necessary preparatory work to give effect to the merging of the agency with the Competition Authority.

"In this regard, the Tánaiste expects to bring forward the necessary legislation to merge the two bodies later this year."

The Department of Enterprise would not be drawn on whether Celia Larkin – as is widely speculated – will not be reappointed to the board of the merged body.

A spokesman said: "The focus of the Tánaiste at the moment is on completing the merger of the Consumer Agency and of the Competition Authority.

"It is far too early to speculate on the people that will be on the board of the new body, although it is unlikely that people who have resigned would be reappointed."

Eddie Hobbs said he had not had any involvement in the National Consumer Agency since the last meeting he attended in March.

Had he been reappointed, the economist had offered to work for free and forego annual fees of €14,000 along with travel and subsistence expenses.

Eddie Hobbs said: "Before my statement, Celia Larkin was twice approached by
senior members suggesting she should stand down. She refused.

"That was why I took the steps I did and why I think the government would be nuts to appoint her to the new merged board."

The NCA was one of more than a dozen bodies identified for "rationalisation" late last year as part of a cost-cutting plan by the government.

The agency had attracted severe criticism after it emerged that the 12 board members had claimed more than €330,000 in expenses and fees.