THE Irish Small and Medium Enterprises Association (ISME) has renewed its attack on public service spending. It has also renewed its call to be included in any negotiations on a new national pay agreement.

ISME chairman Mr Eoghan Hynes said the benefits of economic growth since 1987 had been divided disproportionately "between those in the sheltered public sector and those on social welfare at the expense of the private sector". Mr Hynes was addressing the annual general meeting in Dublin.

Mr Hynes said that while private sector hourly earnings in manufacturing increased by 55 per cent and earnings of Civil and Public Service Union (CPSU) members increased by 52 per cent, hourly manufacturing earnings had actually declined by 3 per cent when productivity gains were included. "No such gains were sought or achieved in the public sector," he stated.

Mr Hynes said that in the 10 years since 1987, spending on the public sector pay bill and on social welfare grew by 77 per cent compared to a 28 per cent increase in spending on the national debt interest and other current services. Numbers in the non commercial public service increased from 195,678 to 13,532 in the 1990-1995 period while in the commercial public sector, numbers fell from 71,431 to 63,134.

Mr Hynes said two immediate steps needed to be taken - the modernisation and renewal of the public service and the inclusion of ISME and the Irish National Organisation of the Unemployed in any negotiations on a fourth national agreement.