The employers organisation IBEC has called on the Government to toughen up on the unemployed if full employment is to be achieved.

In a report published today, IBEC outlines a 10-point action plan to achieve an unemployment rate of about 5 per cent by around 2002 or 2003.

According to IBEC's chief economist, Mr Brian Geoghegan, around 100,000 or 120,000 people could come off the live register, community employment schemes and Government courses over that time.

IBEC is calling for new legislation to give the Department of Social Community and Family Affairs clear powers to refuse payment to anyone who refuses a reasonable job offer, training course or work experience.

"The first six weeks of the under 25s initiative has been very effective and has proved that policies like this can have dramatic results. It also shows that for some the incentive to go and seek work was not as strong as it should have been."

IBEC is also calling for a moratorium on all new employment legislation, including minimum wage legislation already agreed and a complete review of existing provisions.

Mr Geoghegan said this moratorium would allow us to avoid the push from Europe towards a directive on information consultation which many employers feel would alter the balance between themselves and trade unions. It would also allow for a review of the working time directive which has already been introduced.

IBEC is also calling for a reduction of 12,000 in the numbers on community employment schemes, by only targeting the scheme at the hardest to place and the most at risk of poverty. "Expenditure should be reallocated towards more market-led training for the long-term unemployed," Mr Geoghegan said.

The organisation is also calling for a rationalisation of the number of employment support schemes to provide a clear incentive to employers to fill existing vacancies from among the unemployed.

Other points include reducing the burden of taxation by widening bands and increasing allowances as well as expanding the leaving certificate vocational and applied programmes and more emphasis on sub-degree level qualifications.

IBEC is also calling for a greater focus on employer-led training and more spending on people already in work as well as more attention on adult returnees to the labour force.