A radical overhaul of the way infrastructure is delivered is required if the economy is to remain healthy and competitive, JJ Killian, chairman of business lobby group Isme, said yesterday.
Addressing about 350 delegates at the small business group's national conference, Mr Killian said that while there have been improvements, particularly in road transport, Ireland is still a long way from where it should be.
"Although our economy is continuing to grow, the infrastructure bottle neck is starting to cause real problems for Irish businesses and unless the problem is addressed, could threaten future economic growth prospects," he said. "Sustained strategic investment is needed to correct our infrastructure deficit and maintain our competitiveness as a world-class economy."
Mr Killian called on the Government to speed up major projects that are essential to Ireland's competitiveness, in particular broadband, waste and the delivery of improved road and rail infrastructure. He said that the inadequate investment to date is placing a heavy burden on businesses in the form of higher costs and highlighted the fact that traffic congestion alone is costing businesses more than €2.5 billion a year.
"The Government needs to invest in infrastructure ahead of demand if we are serious about delivering a first world infrastructure as opposed to the third world version we have had to put up with to date," he said.
Mr Killian was particularly critical of the State's traffic management strategy, which he said is "in the main, not satisfactory".
He called for a reassessment of the opportunities for increased use of the railways, saying that a first-class road and rail system has a vital role to play in enhancing accessibility to the regions and as a result allowing the country's economic potential to be fully developed.
He also said the issue of waste management needs to be urgently addressed, describing the current situation as a "bomb ready to blow if the problem keeps growing". Mr Killian also reiterated Isme's call for a new National Transport Management Agency, with powers similar to those of the Environmental Protection Agency.
Yesterday's comments come a week after Isme released its pre-Budget submission, calling on the Government to alleviate some of the cost pressure on businesses by levying commercial rates and water charges on households too.
