THE government has given the green light for a controversial state body to hire 12 more staff despite the agency's uncertain future and a freeze on recruitment.

The National Consumer Agency (NCA) has been told by the Department of Enterprise that it will be allowed to increase its staffing levels to 51 because of a major decline in staff numbers over the past 12 months.

The agency – on whose board Celia Larkin, the former partner of ex-taoiseach Bertie Ahern, sits – is scheduled to be merged with the Competition Authority before the end of the year.

Two empty places on its board, left vacant because of the resignation of consumer guru Eddie Hobbs and Trinity College law lecturer Alex Schuster, have not been filled despite being empty for more than three months.

The Department of Enterprise has confirmed that new staff can still be transferred from other government departments or bodies into the NCA.

A statement from the department said: "On establishment day, the existing Office of the Director for Consumer Affairs was subsumed into the new body: it had a staffing complement of 64 persons.

"Since then, the number of staff has dropped to 39 through retirements etc. This has impacted on the ability of the NCA to carry out the statutory functions allocated to it."

Sources in the NCA said the decision to merge the body and rumours about its demise had led to the dramatic fall in staff numbers. The Department of Enterprise said the agency still had a vital role to play and that efforts were underway to increase its staffing complement.

It said: "The NCA and the department are in discussions with the Department of Finance with a view to returning the agency to its early 2009 staffing level of 51 as an interim measure to enable it to fulfil its mandate.

"In relation to the filling of vacancies, this issue is being considered in the context of the government decision in relation to the filling of vacancies. Thus, it is intended that any increase in staff numbers will be met through redeployment of staff from other public-service bodies.

"Future decisions on staffing will be considered in the context of the amalgamation of the NCA, the Competition Authority and the consumer information and awareness functions of the Financial Regulator."

The NCA has been the subject of strong criticism, particularly over the appointment to the board of Celia
Larkin.

On 1 May, Eddie Hobbs stepped down from the NCA's board in protest over Larkin's continued presence and a controversial €40,000 loan she was given by Irish Nationwide.

The loan, which was uncovered during the Mahon tribunal, had been personally approved by Irish Nationwide chief executive Michael Fingleton and raised serious questions of cronyism, according to Hobbs.

Concerns have also been raised about the cost of the agency, particularly after revelations that 12 board members had shared more than €330,000 in expenses and fees.