THE Forfas document was broadly welcomed by most political parties and interest groups last night, although several expressed serious misgivings about specific proposals. Opposition parties questioned whether the Government would implement the recommendations.

Mrs Mary O'Rourke, Fianna Fail spokeswoman on Enterprise and Employment, said she would be calling for a full Dail debate on the document.

"It is ironic that, on the day the report is published, Fine Gael has gazumped the Forfas 2010 study with one to year 2020. Fine Gael, it appears, thinks the Forfas study is already out of date," she said.

But the Minister for Enterprise and Employment, Mr Bruton, dismissed her remarks. "Fine Gael is merely engaging in a discussion on the future shape of the country over the next 25 years. It is something we do periodically," he said.

Mrs O'Rourke also called for a rationalisation of the State enterprise agencies. "Given that Forfas has now concluded a major tranche of its work, it would be an appropriate time to rationalise the State agencies covering enterprise," she said.

But Mr Bruton was adamant that no rationalisation is needed. "Fianna Fail introduced the County Enterprise Network themselves," he said. "What is needed is not more change. Forfas is a making a valuable contribution in co ordinating policy across a wide variety of State agencies."

Mr Michael McDowell, the Progressive Democrats spokesman on finance, called the Government "ideologically incapable" of delivering on the report's main recommendations.

"I think Michael is spotting the weakness in himself," Mr Bruton responded. "After all, he had a track record of not implementing change when in government."

The Green Party vacillated between hailing the report as an adoption of Green economic thinking and calling 5 per cent growth "environmentally destructive".

IBEC, the Chambers of Commerce of Ireland, the Small Firms' Association and ISME all welcomed the report. However, Mr Don Curry, chairman of the Irish Small and Medium Enterprises group, said he was "concerned" the report proposed to fund tax reform by increasing VAT and property tax rather than concentrating on control of government spending.

"The report is an important contribution to the discussion on industrial and fiscal policy and should not, like most other reports, be allowed to gather dust," he added.

Mr Brian Geoghegan, director of economic affairs at IBEC, while broadly welcoming the report, said IBEC believed there should be no new taxes, including a broadening of VAT or property tax other than in the context of a reduced total burden of taxation. "IBEC is not happy with the proposal for a 2.5 per cent increase in government spending," he added.

The Irish National Organisation of the Unemployed (INOU) also attacked parts of the report. "The target of halving unemployment by 2010 is far from ambitious," said Mr Paul Billings, INOU chairman.