FARMERS have the largest disposable income in the country but spend less than urban households, the Household Budget Survey has found.

Farm households have an average of £320.07 to spend every week. This compares with £292.73 for urban households and £244.21 for other rural households.

Farm households also pay the least tax at £37.27, while urban households pay £71.71 and other rural households pay £45.31.

Mr Con Lucey, chief economist at the Irish Farmers Association, defended the high level of farm income. He stressed that farm households are 10 per cent larger than others and that there are relatively more people at work and fewer unemployed in farm households.

The survey also found that overall household expenditure has risen by 40 per cent over the past seven years to an average of £312 a week.

Food is still the largest single item of expenditure for households although the proportion spent has fallen. The average food bill is £70.75, or 22.7 per cent of expenditure from 25.2 per cent in 1987.

Housing and transports costs have increased, however. Housing now takes up 9.8 per cent of expenditure from 8.8 per cent, while transport accounts for 14.4 per cent from 13.6 per cent. Housing costs the average household £30.56 while transport comes in at £44.73.

The next largest items are drink and tobacco, where the households say they spend £23.85 a week. The CSO notes, however, that many households underestimate the amount they spend on these items.

The average household now spends an average of £19.92 a week on clothing and footwear and £15.84 on fuel and light.

Spending on services has increased from almost 22 per cent of all spending in 1987 to over 24 per cent now, or £76 a week.

The survey also found that 76 per cent of all households now have a telephone, compared to 54 per cent in 1987. The number of video recorders - has increased dramatically from 20 per cent to 64 per cent, while 47 per cent now have microwaves, up from 6 per cent. Almost 12 per cent of people have burglar alarms from only 4 per cent at the last survey.

The full results of the survey will be published in two separate reports. The first will relate to all households in the State, while the second will contain separate estimates for urban, farm and non farm households.

The main purpose of the survey Is to determine patterns of household expenditure to update the weighting of the consumer price index. Around 8,000 urban and rural households kept detailed daily records of all expenditure incurred over a two week period.