In a strongly worded pre-budget submission, Dublin Chamber of Commerce(DCC) has told Minister for Finance, Mr Charlie McCreevy that he must freeze public sector recruitment from January 2003 in order to cut public spending.
The Chamber also urged the Minister to pledge 'No New Taxes' and to adopt innovative finance measures as part of the upcoming budget.
It said that the Government must cut the growth in public spending to sustainable levels; not more than 7 per cent in 2003. Additionally, the submission says, it should continue with the capital programme and the National Development Plan.
"The only way to arrest the deterioration in the public finances is for the growth in public expenditure to be brought sharply into line with revenue growth for the remainder of this year and into 2003.
"In that regard, the maximum level of current expenditure increase that is sustainable in 2003 is 7 per cent, with similar levels over the next three years.
The most effective way to achieve these targets is to control and exercise rigorous evaluation of individual spending programmes. "
Other key points in the submission include:
that the public service pay bill is the area that poses the greatest threat to the imbalance of the public finances; a target for the total public service pay bill should be set for at least a three year period from 2002 onwards. The total pay envelope should be set at the at the 2001 level, with increases not greater than 5 per cent in any one year.
that there must be a firm commitment in Budget 2003 that there will be no roll back on the tax reductions introduced during the lifetime of the previous government, that the reducing schedule for Corporation Tax will continue, and that no new taxes on entrepreneurial activity and wealth generation will be introduced.
Financing through public borrowing, National Pension Reserve Fund, Public Private Partnerships, Special Purpose Finance Vehicles and sales of State Assets.
"Borrowing for projects with positive returns to the economy is still an option," Dublin Chamber President, Mr Peter Webster said.
"There is a very willing private sector looking for returns on goodprojects via the public private partnership process. Business and other users will pay tolls and charges for better services.