Public spending under attack

THE Chambers of Commerce of Ireland (CCI) has strongly criticised the Government for failing to keep a tighter reign on spending. Chamber president, Mr Tony Prendergast, said yesterday the scope for tax cuts in the next Budget would be much greater if Government spending had been kept under control.

"While the scope for tax cuts is still significant, the scope for tax reform could be much greater if the Government had kept its spending within the rate of inflation," he said.

The CCI claims in its latest report that its research shows some Government Departments are failing to keep within their spending guidelines. Such overruns, the report says, will also hamper the Government's ability to reduce the national debt.

The report shows that the Government spend on public administration has been rising at a rate well above inflation. Since 1992, it says, the spend on public administration has risen by £76.4 million or 22 per cent. Salaries, wages and allowances rose by 17.3 per cent since 1992.

In terms of spending on these areas, the report says the Departments of Agriculture, Food and Forestry, Finance and Social Welfare account for 66 per cent of the total spending allowance.