As much as €140 billion must be invested in Irish infrastructure over the next 15 years if the economy is to remain efficient and competitive, A&L Goodbody Consultants said yesterday.

In a report entitled Ireland's Strategic Infrastructure Investment 2020, A&L Goodbody said infrastructure should be seen as an investment by the State and not a drain on resources.

"Underinvestment in infrastructure means underperformance in the economy," said Peter Brennan, the group's managing director.

"Bold decisions are needed as infrastructure is critical for competitiveness."

He said the decisions should reflect quality of life issues such as education, childcare and commuting.

The report recommends that the Government extend the timeframe for the next National Development Plan from 2013 to 2020 and also suggests the creation of an infrastructure board to co-ordinate the projects.

The proposed €140 billion investment over 15 years compares with the Government's current capital investment programme of €36 billion over the next five years.

Mr Brennan said it was particularly important that the Government invest ahead of demand to prepare the State for the predicted increase in population - a further 1.3 million expected by 2020.

To facilitate the increase, particularly in education funding, A&L Goodbody proposes the Government lift the cap on public spending, which currently stands at 5 per cent of GNP, and consider borrowing money.

Mr Brennan also stressed the important role private finance initiatives, such as the one used to build the Dundalk bypass, would play in the increased infrastructural investment.