As Ireland's economy continues to falter, a debate is now raging over who should pay for continued investment in road infrastructure.

The next 12 months could prove to be a defining period for the road haulage industry.
When the Drogheda bypass opened for business on Monday June 9, a new chapter in the provision of road infrastructure in Ireland was written. The Drogheda bypass became only the third road in the country - after the East and West Link bridges - to be tolled.

On the opening of the new bypass IRHA communications director Jimmy Quinn commented: "We are breaking new ground here. The Drogheda bypass is the template for the future."
Quinn of course was alluding to the fact that the National Roads Authority has placed a £4.90 toll on the route for heavy goods traffic. It has been estimated that HGVs will account for only 25 per cent of traffic on the route, yet will contribute more than half the income generated.

It now seems clear the Government and the NRA believe the road haulage industry should foot most of the bill, for the provision of future road infrastructure in the State. In doing so, it is asking the road haulage industry to make a disproportionate contribution to the final bill.

By 2010 there will be 12 tolled roads in the State. The Waterford city bypass, Kilcock / Kinnegad motorway, Fermoy bypass, Limerick southern ring tunnel, Clonee - Kells motorway, Oranmore - Ballinasloe road, Nenagh - Limerick motorway and the second Westlink link bridge will all be tolled.
Transport Minister Seamus Brennan is even considering selling off the Dublin Port Tunnel to a private operator when it is finally completed in two years time.

The NRA did not consult with hauliers on the implementation of tolls on the new bypass. It applied the toll and made the foolish assumption hauliers would use the new bypass because of its comparative advantage over alternative routes. It didn't contemplate a scenario where hauliers would refuse to use the route because of the cost.

The NRA has flatly refused to enter into dialogue over tolls. It has already drawn up the tolling template with the opening of the Drogheda bypass and equally penal tolls for HGVs can be expected on all these routes when they are finally built.

First and foremost hauliers are business people. They are in business to make a profit. They are also pragmatists; they realise there is no such thing as a free dinner. If a fair and equitable toll was set on the Drogheda bypass and future road infrastructure, hauliers would invariably use these roads.

The haulage industry is profit driven and in a time of ever dwindling margins tolls represent another layer of expenditure, which eats away at the bottom line.

If the NRA and the Government wants to encourage the road haulage industry to use the toll roads rather than toll-free alternatives they must revisit their pricing policy. The NRA and the Government must engage in meaningful dialogue with hauliers and thrash out a workable template for the future.

While the haulage industry is profit driven, it is also driven by Ireland’s consumer society. In this edition of Irish Trucker - Tolls Apart - Quinn comments that the road haulage industry is a function of the consumer society and not the other way round.

It begs the question: Should Ireland's consumer society pay for road infrastructure or should hauliers foot the bill? The road haulage is willing to make an equitable contribution towards the provision of infrastructure, but is Ireland’s consumer society willing to put its hands in its pockets?
PAYE workers would argue that they are already paying for infrastructure through taxation. They would argue that they shouldn’t be asked to pay a second time round.

The motorist would argue that he / she is contributing, through a range of taxation measures including motor tax, excise duty and VAT on fuel and Vehicle Registration Tax.

The business community would argue that they are already contributing towards the provision of infrastructure, through a myriad of taxes.
While all these interest groups are contributing, it is clear there is a shortfall. To meet this shortfall, the IRHA has proposed that industry should pay a 2 per cent levy on profits. The employers’ lobby group, IBEC, has rubbished the suggestion.

This may not be the appropriate ‘vehicle’ for funding infrastructure, but it represents a genuine attempt on behalf of the IRHA to address the issue.
It is now clear that the Government cannot fund the provision of Ireland’s entire infrastructure requirements from general coffers in an acceptable time span.

Perhaps the Government should consider borrowing to fund the deficit. Many commentators believe the economic climate is conducive to borrowing for capital projects.

There is unanimous agreement Ireland has an infrastructure deficit. It is also agreed Ireland should be working to bridge this gap now, so that Ireland can take economic advantage of the upturn in the world economy when it eventually happens.

The only unanswered question is who should pick up the bill. The haulage industry will pay it share. The time is now right for others to step up to the plate.