Ireland will be unable to locate any significant new business in the weaker regions unless it delivers on the necessary roads, electricity and energy supplies, according to the ESRI.

But the institute has serious reservations about the public-private partnership process, including road tolls.

"While the Government has made significant changes to the planning process," it says, "there still seem to be huge problems in getting projects from the drawing board into final use".

These public infrastructure projects include roads, railway improvements, the extension of energy supplies and the expansion of the telecommunications network in the regions.

The ESRI says that, although the Government has given a clear commitment to regional development, "it will be impossible to locate any significant new business in much of the Border, Midlands and Western region unless urgent improvements in the electricity transmission network are implemented".

The ESRI accepts new motorways and existing roads in the Dublin area are heavily congested and tolls may be a method to reduce demand, but warns that, outside Dublin, "the case for tolling motorways is much weaker".

The institute is also critical of the current waste disposal debate, commenting that it is not just commercial activity that is at risk.

In Dublin, criticism is aimed at the "failure of physical planning" in public transport and low-rise urban sprawl.

The planning system still has the opportunity to insist on high-density development along urban public transport, according to the report.

In the regions, the ESRI says the "infrastructure deficit" is likely to exacerbate the position relative to stronger regions by restricting inward investment and expansion of indigenous firms.