FAS, the state jobs and training agency which was rocked by a series of spending scandals five years ago, has been formally dissolved.
Education Minister Ruairi Quinn signed the papers yesterday which established a drastically slimmed-down agency in its place, Solas.
At its height, FAS employed more than 2,000 people, but Solas will employ fewer than 200.
Almost 1,000 FAS staff have transferred to the Department of Social Protection. A further 800 instructors will transfer over to the new education and training boards set up by Mr Quinn last July.
The remaining 200 Solas staff will be responsible for co-ordinating the delivery of further education and training programmes, but will not deliver the programmes themselves.
Solas staff will also move from their offices in Baggot Street in Dublin 4 to premises in Castleforbes House, in the city centre, by the New Year.
"At such a critical time in the recovery of our economy, it is vital that we have an agency that engenders public confidence and addresses skills gaps in our labour force," Minister Quinn said yesterday on the establishment of Solas.
Following an audit of the agency's corporate communications department in 2008, it emerged that €640,000 had been spent over four years sending senior management on trips abroad which included expenses for golf games and visits to beauty salons.