Two internal figures at FAS, a senior civil servant and the chief executive of the Labour Relations Commission are thought to be among the leading contenders to succeed Dr John Lynch as director general of the State training authority. Dr Lynch is retiring next September to become full-time executive chairman of the State-owned transport group CIE.

The chairman of the Labour Relations Commission, Mr Kieran Mulvey, is considered very likely to apply for the post. Mr Mulvey, who was unavailable to comment yesterday, has a strong track record in industrial relations.

Those considered likely to apply for the position by people familiar with FAS include its secretary, Mr Gerry Pyke, and an assistant director general in charge of finance and administration, Mr Donal Sands. Both declined to comment yesterday.

A FAS board member and assistant secretary of the Department of Enterprise, Trade and Employment, Mr Seamus O Morain, is also believed very likely to apply for the post. Mr O Morain's brief at the Department includes special responsibility for labour force development, now a key element of FAS's strategy.

Advertised last weekend, the position commands an annual salary of £80,000£100,000. Interviews are likely to take place in the week following Tuesday next, June 6th, the closing date for applications. It is believed that the chairman of FAS, Mr Patrick Lynch, will head an interview panel with authority board members Ms Alice Prendergast and Mr Plev Ellis.

The role of the authority, which had a budget of more than £490 million (€622 million) in 1998, has changed radically in recent years.

Much of its work is now focused on expanding the labour force by encouraging workers to return or move to the State. It is thought there may be a shortfall of some 35,000 workers.

The new director general is also likely to lead a further reduction in the community employment scheme, which FAS administers for the Government. This was long a central element of counter-unemployment policy, although the economic boom and the labour shortage have caused its importance to diminish.

Another key element of the new appointee will be the development of FAS's training function and its apprentice programmes.