Increased investment in roads from 1999 to 2005 is "an imperative" if economic growth is not to be constrained, according to IBEC. In survey citing savings in transport costs from previous investment, the employers group estimates an investment of £555 million per annum will be required to bring our national primary roads alone to a congestion-free status by 2005. This figure, IBEC notes, is three times the level of investment spent during the current funding period in 1994 to 1999. The survey shows that companies believe further improvement in the roads system is necessary to enable them to compete more effectively in terms of reliable journey time. "Certainty and reliability in distribution is crucial to success," the report says. The elimination of bottlenecks by the construction of by-passes, is cited as the most important factor in faster transit times.

Ms Karen Gannon, IBEC's director of transport policy, commenting on the findings said "under-performance on key routes is linked to both bottlenecks and considerable traffic growth since 1989. Ireland's traffic congestion is caused by inadequate road capacity rather than excess demand, as in continental Europe. We must redress this speedily". She argues that the full benefits of investment in our national primary and secondary routes cannot be achieved until "the upgrading of entire routes has been completed".

Almost nine out of 10 companies surveyed said road investment by the Government and the EU has had a beneficial impact on their transport costs. The road users found that their unit delivery costs increased by only some 1 per cent per annum on international routes since 1989 and by slightly less on domestic routes. Average savings of 24 minutes have been achieved on their most frequently used business routes since 1989.

Two out of three respondents considered road capacity as the first or second most important element in keeping transport costs down. The contribution to cost containment from increased road capacity and better traffic management was "significantly greater than firms could themselves make through improved productivity".

The survey notes that investment in roads in Ireland has lagged behind the growth in traffic, an emerging gap which is "particularly significant for Ireland" which is now "quite untypical of the EU as a whole".

The survey backs this contention with statistics which show roads carrying 97 per cent of Irish passenger traffic and 86 per cent of freight traffic. This contrasts with only 59 per cent of French freight by road and 44 per cent in Germany.

IBEC reckons that the cost of congestion will reduce GNP growth by 0.3 per cent per annum until 2010, reduce employment growth by one quarter, increase average direct tax rates by 2.2 per cent and increase unemployment rate by 2.7 percentage points. On congestion in Dublin, IBEC argues that the severe congestion can only be avoided by a reversal of the current policy which has banned the provision of extra capacity on the underdeveloped inner road network.

Without a change in policy IBEC reckons that the congestion now experienced will in the foreseeable future become gridlock.

The survey was based on the response from 127 road users, representing an industry cross section.