THE small business lobby group ISME, has attacked proposals for the phased introduction of an extra week's statutory holidays over the next three years. The additional holidays, which have been agreed in principle by the Minister for Enterprise and Employment in discussion with ICTU, will cost the small and medium business sector £145 million a year, according to ISME.

The proposals, which come under the EU social chapter, will push up the payroll cost disadvantage that is already being borne by small Irish business exporting to Britain, where the social chapter does not apply, claims ISME. These companies already operate at 20 per cent payroll cost disadvantage, according to the lobby group.