The Dublin Chamber of Commerce has called on the Minister for Finance to create an embargo on filling two out of every three vacancies arising in the public sector.

In its pre-Budget submission, the chamber said the public service pay bill was the greatest threat to public finances. Pay per head rose 50 per cent during 1997 to 2002, said the chamber.

"No commercial organisation could sustain increases in pay costs of such an order."

The chamber proposed a target for the pay bill be set for at least a three-year period. It also urged Mr McCreevy to stick to his tax policies and continue with the investment programme on infrastructure.

"Borrowing for projects with positive returns to the economy is still an option. There is a willing private sector looking for returns on good projects."