Time to tackle the gridlock

Two out of five Dublin businesses are prepared to forsake the capital and relocate outside the city, in order to beat the ever worsening gridlock crisis, according to a survey conducted by the Irish Business Employers Conference (IBEC). In light of this startling statistic, John Loughran argues that the completion of the National Development Plan should be brought to the top of the political agenda.

The Enfield (N4) relief road in Co Meath opened for business on Friday 12th April much to the relief of embattled hauliers and private motorists. One of the worst bottlenecks in the country was eliminated at a cost of euro 11 million. Five-mile tailbacks and delays of 40 minutes were not uncommon at peak times in the south Meath village. It has been estimated that some 20,000 motorists passed through the village every day. While the hold-ups were horrific for those involved there was also a heavy economic cost.

The new relief road has shaved at least half an hour off the average journey time between Dublin and Galway - an hour on a round trip. Without labouring the point that translates into a significant financial saving for the haulier. When the Kilcock,Enfield, Kinnegad bypass is eventually built, the time saving on the route will be even more considerable.

The IBEC survey found that some 85 per cent of Irish companies are affected by traffic congestion. In Dublin the figure rises to over 90 per cent. These statistics make damning reading. Put simply more than eight out of ten workers in the country are adversely affected by traffic congestion as they try to make their way to and from work.

The IBEC report stated: "IBEC is concerned that the economy is being crippled by traffic congestion, which is damaging competitiveness and driving overseas investment elsewhere. The results confirm to us the view that relieving traffic congestion throughout the country and particularly in Dublin needs to go to the top of the political agenda."

In light of IBEC's findings, the Government's decision to delay the roads programme under the National Development Plan by reducing funding this year, seems shortsighted and foolish. It is a case of being "penny wise and pound foolish" or more accurately "cent wise and euro foolish".

At the beginning of March the National Roads Authority announced that it had received euro 1 billion in funding, up euro 200 million on 2001 from the Government. However, with construction inflation running at 15 per cent, this represents a reduction in funding in real terms.
Only two of the 11 projects deferred last year got the green light in 2002. The vast majority of the funding was allocated to projects already underway, leaving little for new projects.

The National Roads Authority because of a lack of funds put bypasses for Ennis in Co Clare and Carrickmacross in Co Monaghan on hold. The only two projects earmarked to start this year are the Ashford/Rathnew and Ballincollig bypasses,with work continuing on four other projects.

In a recent interview with Irish Trucker, IRHA communications director Gerry McMahon said that hauliers working out of Dublin were 33 per cent less productive than five years ago because of worsening gridlock.
He appealed to the Government to borrow the additional funding required to complete the roads programme. Borrowing for capital purposes, according to McMahon made economic sense, and he equated it to a house-buyer taking out a mortgage on a new home. "Ireland has always been able to honour it borrowing commitments in the past, and I can't see any reason why that situation would change in the future. If we need to borrow to complete the roads programme I feel the Government should do it now and not in 5 years time when the price-tag will be considerably greater."

Fine Gael's spokesman on Enterprise, Denis Naughten also believes the Government should now borrow to complete the National Development Plan. "If it means increasing the national debt to deliver on the National Development Plan, I feel it would be money well spent. Our economy has slowed down. For the economy to take off again, we will have to have the infrastructure in place. It is now more important than ever to have the infrastructure."

Finance Minister, Charlie McCreevy, delivered what has been perceived as a relatively a neutral budget earlier this year. In doing so he missed the opportunity to re-ignite the National Development Plan by borrowing to ensure its timely completion.

The point could be argued that he delivered a wise and prudent Budget, or that he played safe in what is ultimately an election year. The National Development Plan for all its merits is not a vote catching issue. It will have limited mileage in the run-up to the General Election.

McCreevy is short odds to retain to the Finance Portfolio after the General Election. Perhaps with another five-year term in the bag he may opt to add impetus to the NDP buy allocating the required funding.

The time has come for Mr McCreevy or whoever holds the finance brief after the general election to get the National Development Plan back on course. The swift completion of the roads programme should now be moved to the top of the political agenda.