THE Government is frittering away the fruits of economic prosperity and cannot be trusted to keep its own promises on spending, the Chambers of Commerce of Ireland said last night. It should reconsider its 1997 estimates and cut back on public sector pay, the group added.

"Next year, the Government is allowing for growth in current spending of some 6 per cent - three times the rate of inflation," said the CCI's chief executive, Mr Paul Skehan. "Given the Government's recent record in keeping its own promises, this is more likely to come to 9 or 10 per cent by the end of 1997."

The estimates for supply services show a projected net increase of £536 million, Mr Skehan said. If the Government had opted to stay in line with inflation it could have saved £357 million.

He said that while the Maastricht criteria had forced the Government to display some fiscal rectitude, they did not go far enough because they still allowed the fruits of economic prosperity to be frittered away even though there could be hard times ahead.

"The Government still spends as if the punt is going out of fashion. The objective seems to be to spend every available punt in advance of the introduction of the euro...indeed as the election looms the condition appears to worsen," Mr Skehan continued.

The public sector pay bill is likely to increase by 14 or 15 per cent over the next three years and the Minister for finance should now reconsider the 1997 spending plans.