As corporate Ireland has grown and prospered, so has the public relations industry. Over the last 18 months, in particular, as the benefits of the booming Irish economy have made themselves felt, demand for communications services has soared.

"The economy is good and those doing well are spending more on public relations, but there is also a greater realisation of the value of PR and more people are putting money into it," says Mr Michael Moloney, chairman of the Public Relations Consultants' Association (PRCA).

The industry's trade association, which represents 36 Irish firms, says its members employ more than 450 people and enjoy fee income of some £20 million, compared with around £8 million five years ago. Mr Moloney says members are forecasting a 34 per cent increase in fee income in the three years to 2000, while staff numbers are expected to increase by 20 per cent over that period.

Although many firms are reluctant to disclose their fee income making it impossible to compile a league table of the top players a handful of firms each employing 20 or more people dominate the industry.

However, the traditional pecking order has been disrupted in recent years by the arrival of a new kid on the block in the form of Fleishman-Hillard Saunders (FHS). Set up in 1990, the firm has grown quickly and is believed by many to now occupy the top slot, long held by Murray Consultants.

Its rapid expansion and aggressive tactics such as the recent poaching of four senior staff from Murrays along with some of their clients has led to a view in the industry that the firm is attempting to use the deep pockets of its joint venture partners, US-based Fleishman-Hillard, to buy market share. This is viewed by more traditional players in the industry as a high-risk and short-term strategy which is likely ultimately to fail.

But FHS managing director and 20 per cent shareholder, Mr John Saunders, denies such charges and says the firm has funded its growth entirely from its own resources.

Instead, he attributes the firm's rapid development to its success in attracting a host of multinational firms, its keen awareness of international trends in the industry and its commitment to attracting the top professionals.

While Fleishman-Hillard has not bankrolled its development, Mr Saunders is prepared to admit that having such a partner undoubtedly encourages banks to look more kindly upon the firm when doing business.

Whatever the prospects for FHS, the firm's arrival has raised a number of issues for a developing industry. Rumours and reports that it has offered staff lured from other agencies salaries of £80,000 upwards has raised eyebrows in an industry in which a recent PRCA survey found the average managing director's salary to be £55,000.

The issue has pointed up the fact that in a fast-growing industry, a shortage of skilled and experienced practitioners may be emerging. Traditionally, many of the PR firms have preferred to "grow" or develop their own staff, but this too poses more of a challenge than in the past with graduates today having a wider range of careers available to them than just five years ago.

For some, however, the focus on pay is welcome. They argue that experienced PR practitioners are as valuable to a company as its legal or financial advisers and should be paid accordingly.

There are also questions over the shape of an industry which many people feel is too fragmented. With clients increasingly demanding a range of services, smaller firms may become increasingly vulnerable to those like FHS with capital to deploy and a full range of services to offer.

The pace of consolidation may also be forced if the cost of employing the best, in a business where people are a key asset, rises. However, the trend at present appears to be towards further fragmentation, as a number of experienced practitioners take advantage of the economic boom to branch out on their own. But if the industry faces challenges, there are also plenty of opportunities.

While the business is expected to demonstrate strong organic growth as demand for traditional services such as corporate and financial PR and event management increases, certain areas such as technology, crisis management and lobbying are identified as particular growth areas.

The decision by Text 100, the specialist British technology PR company, to open an office in Dublin some six years ago reflects the arrival of a host of high-tech multinationals in Ireland and their need for PR services.

With a staff of 10, Text 100 is now the biggest players in technology PR in Ireland and acts for clients such as Microsoft and Gateway. But the local firms have not been slow to get in on the act and most see it as an area in which they can expand further.

Lobbying, or public affairs, is regarded as another growth area, particularly for those firms representing the major Irish and international companies who like to keep open a channel of communication to Government.