BUSINESS groups. IBEC and ISME, have both placed lighter control of Government spending high on their election agendas. IBEC warned in a preelection document of the dangers of rising public sector pay, calling for the new Government to take "an absolutely firm line" on this issue. ISME called for a much tighter restriction on spending and has also said that it must be included as a full member in social partnership negotiations to represent the interests of small business.

IBEC's other "priorities for a new Government" include modernisation of the public service, commercialisation of State companies and a follow through on the promises in the recent White Paper on Human Resources.

Meanwhile, ISME's second quarter survey shows that only 9 per cent of small business managers are less confident about the future than they were 12 months ago, and a majority expect to hire more staff in the year to come.