The director-general of FAS, Mr John Lynch has launched a strong attack on small firms lobby group ISME, claiming it is a PR-driven organisation which often makes wild and inaccurate statements.

He also told delegates that the labour availability in Ireland remained favourable, compared with that in competitor countries.

Mr Lynch took issue with several press releases criticising FAS which were compiled by ISME.

"In relation to FAS, ISME has not always adopted a reasoned approach, nor has it always adhered to rigorous analysis.

"Instead, for whatever reason, it has concentrated on being a media driven organisation and, in the case of FAS, has been persistently inaccurate."

He said the transition to rapid employment growth had inevitably brought a changed recruitment environment, compared with the abnormal low-growth years of the 1980s.

"Where specific difficulties have emerged which might threaten the country's competitive position, government and its agencies have been quick to respond," he said.

Mr Lynch said public policy would continue to address critical issues as they arose. In doing so, it would be helped by sensible responses and by constructive criticism and suggestions from employers, of whatever size, both multinational and indigenous,"

Mr Lynch added that the major task was to ensure the re-integrating of those who have been marginalised, particularly the long-term unemployed, both old and young.