CREATED by act of parliament in 1975, the Welsh Development Agency had the rug pulled from under it last week by Assembly leader Rhodri Morgan.

Celebrated in a number of places, and especially within its own offices, the WDA has become so powerful that news of its imminent demise was greeted with a mixture of shock and bemusement.

Nowhere was it felt more keenly than in the office of chief executive Graham Hawker. He, with chairman Roger Jones, was given about two-hours' notice of the announcement.

Mr Hawker reacted to the news by resigning. This was the memo he sent around to WDA staff.

"When attending the economic development and transport committee of the National Assembly this afternoon, I announced my decision to resign.

"I explained that while the decision to abolish the WDA was a matter for the democratically elected Assembly, I do not believe that I am well placed to lead the organisation into the Civil Service.

"In leading change any leader has to display enthusiasm for that change.

"I believe that I am ill equipped to lead the WDA into a civil service organisation. I therefore intend to stand down.

"For the last three and a half years I have been privileged to be the leader of wonderful, committed people who are truly passionate about their work. I am confident that you will continue to serve well the people of Wales.

"I have also been honoured to work with great people on the WDA board for some eight and a half years. I will be sad to leave the agency. I have thoroughly enjoyed working with you. Your achievements are for all to see.

"... In the meantime it has to be business as usual..."

An honourable withdrawal or a case of "toys out of the pram"?

Friends and former colleagues have mixed views. All spoke to the Argus on condition of anonymity.

One said: "Graham has always been very adept at office politics and to feel that this plan has been hatched and has caught him completely unawares will be a big blow to his pride."

Another said: "Although he's been a public servant for a number of years he doesn't see himself as one: he thinks he's the link with the private sector and the idea of becoming a proper civil servant will be anathema to him."

A third said: "Graham had only just finished a major re-structuring exercise at the WDA and he must have found it galling that all his work had suddenly become redundant."

A former colleague from Mr Hawker's days at Hyder, the privatised Welsh Water utility, argued that his resignation statement about needing to believe in change to lead it was a good one. If he didn't agree with it he had to go."

Opinions were divided about how great a loss to the WDA and Wales the resignation will be.

Conservative AMs and economic spokesman Alun Cairns has argued that as the former leader of a major PLC (Hyder) Mr Hawker accepted a much smaller salary (£120,000) than he could earn in the private sector to make a difference in Wales and he could now be lost to the country.

One former colleage was dismissive of this view: "Graham has never left Wales and is never likely to.

"In fact, had Welsh Water not been privatised he would never have left the public sector."

He also questioned any financial sacrifice: "Don't look at his salary, look at his pension fund."

Others paid tribute to Mr Hawker's strengths and said he would be missed.

"He's good at recognising people's talents and surrounding himself with able executives.

"He's also good at organisational structures and developing teams. He's not status-conscious and would like to be thought of as one of the boys."

Another long-standing observer of Mr Hawker's career said: "Graham is a reserved man who doesn't like the limelight.

"That has been a bit of a problem for him at the WDA because it's such a high-profile role. And some would say Wales would be better off with an extrovert in the job rather than a shrinking violet."

Last week the Financial Times suggested there had been increasing friction between Mr Hawker and his political bosses Andrew Davies and Rhodri Morgan.

A friend said: "This doesn't surprise me because neither Andrew nor Rhodri have much business experience and I can see any edicts coming from them being extremely irritating to Graham."

The son of a miner, Mr Hawker was born and raised in the mining village of New Tredegar in the Rhymney Valley.

He trained as an accountant and worked for Welsh Water and its privatised successor Hyder for 30 years, departing in September 2000. Already a member of the WDA advisory board, he became chief executive of the quango two months later.

In 1999 he received the Prince of Wales Ambassador's Award for his contribution to corporate community involvement and in 1999 he was awarded the CBE for services to industry in Wales.

In his late 50s, and not a passionate devotee of the arts or sport, Mr Hawker could devote his time to his family and garden at the former vicarage he owns near Abergavenny.

But with a restless energy and the connections of a Taffia don, it should not be long before this able executive pops up in another senior capacity.