THE new White Paper on training should feature management development as a central issue and current training systems should be radically overhauled, lobby groups for small firms said yesterday.

The Irish Small and Medium Enterprises Association (ISME) said yesterday Government spending on training in small and medium enterprises would equate to just £34.69 per company if every eligible firm applied.

It said that of a £5.63 million budget in 1993 for a programme known as the Training Support Scheme (TSS), just £3.5 million was actually spent on training in industry.

ISME said the TSS budget should be increased to £10 million a year for the years 1997-1999 and training goals should be established.

ISME also said existing training institutions such as the Institute of Personnel Administration (IPA) and the Irish Management Institute (IMI) should be merged. "FAS should be clearly split into two divisions to demarcate its two functions," it said.

Mr Brendan Butler, director of the Small Firms Association (SFA) said small firms should be allowed to decide what training initiatives were required, rather than having them imposed.

He said the State should spend £80 million on training over the next four years, with most of the money being spent on small and medium firms.

He said financial support for small firms could include interest free training loans, matching funds from Government, tax breaks and cash subsidies.