The Association warned the Minister that, even though the general economic fundamentals are positive, there is the temptation to "spend for the day", particularly with an election on the horizon.

ISME argued strongly against such an approach, believing that all future expenditure should be assessed against the strict criteria of long-term return on investment, continued value for money and a high social return that will only benefit the economy as a whole.

In its pre-budget submission, the Association argued that:

"The high cost environment for business has been central to undermining our competitiveness and needs to be addressed in a systematic way, particularly the Government controlled element. ISME also outlined that Ireland has a significant infrastructure deficit that needs to be urgently addressed in a coherent and planned basis. Critical to overcoming this deficit, is that it is tackled in a way which sustains a level of public investment over a 10-15 year horizon, as opposed to a short-term burst of spending that delivers poor value for money through a combination of inadequate planning and project design."

Recommendations made by ISME in its submission to Mr Cowen included suggestions for improvements in the areas of cost competitiveness, infrastructure, benchmarking and public sector reform, pensions, VAT and excise duties, and innovation and R&D.