The Irish Small and Medium Enterprises Association (Isme) has called for social partnership to be ditched and for a National Representation Forum to be created instead.
Speaking at Isme's national conference in Dublin today, chairman Eilis Quinlan said: “The trade unions, in particular the public sector unions, have been allowed ride rough shod over the economy through the so-called partnership process and in dealings with Government.
“This has led to a bloated public service, a luxury the country can no longer afford.” Ms Quinlan branded the social partnership a “sham”.
Despite being the backbone of the Irish economy, small and medium businesses were currently ignored at all levels of decision making, she told Isme’s annual conference.
“They are owned and operated by locals, the capital employed is local, and they are not mobile international players who will pull out of the area once they are out of their grant aid period,” she added.
Ms Quinlan said a National Representation Forum to include representatives of small business should be set up as their concerns were being ignored in the decision-making process.
Isme’s proposed new forum would include also include trade unions, the economic think-tank Esri, the Central Bank and front bench spokespersons from Opposition parties.
“This inclusive approach should lead to a national recovery plan, which is clearly lacking under the current partnership model, and criminally lacking from our current government,” said Ms Quinlan.
Speaking earlier on Morning Ireland, Ms Quinlan also said cuts were necessary in public-sector pay and numbers. "Partnership has driven up pay in this country through the benchmarking process, and it's been very detrimental to small businesses.
"We've seen . . . where businesses have been cutting salaries right across the board, and yet we have to listen to David Begg coming out and saying no private-sector salaries have been cut. That's just a joke. It's just wrong.
"We need a plan. We need direction. We've been hanging around here for 18 months, and the paralysis and incompetence that has put us in this mess . . . there's no coherent plan to get us out of this plan," she said.
Asked about the National Asset Management Agency (Nama), Ms Quinlan said she had no confidence in its ability to free up lending for businesses.
Isme is holding its national conference in Santry, Dublin, today under the theme Quare Times - Why be afraid?