Charges would maximise efficient use of facilities

INFRASTRUCTURE:NEW "PRICING mechanisms" including more road tolls, congestion charges, and water and sewage levies have again been put forward by the OECD.

While its Economic Survey of Ireland 2009, published yesterday, noted “substantial progress has been made in upgrading physical infrastructure in recent years”, the OECD said consideration must be given to getting the best value for money for that investment.

The OECD said user charges – which it had recommended in previous economic surveys of Ireland – would ensure facilities such as roads and water supplies were used efficiently.

The charges would also force a rigorous re-evaluation of future projects, such as those within Transport 21, yesterday’s report claimed.

This re-evaluation of future projects was necessary, “given the severe adjustment Ireland is undergoing” and future investment should recognise the new economic circumstances.

The report said households continued to receive free water and sewage collection.

This is despite a previous recommendation that the cost of providing drinking water and collecting and treating sewage be fully charged to homeowners.

It also said there had been “no progress” towards the introduction of a congestion charge in central Dublin, to be introduced “when public transport alternatives improve”.

The report recognised an all-Ireland electricity market was now in place and work was under way to integrate that market with the UK.

However it said efforts to remove restrictions on the number of bus routes that can be operated by private firms had been slow. The report said legislation was in place to facilitate the appointment of an independent transport regulator for the Greater Dublin Area, but this also gave the incumbent a five-year guarantee that its routes would not be subject to open tender.

The OECD also noted that the European Commission was investigating whether State aid to bus companies was legal.

Excluding mobile broadband communications services, for which there was “substantial take-up”, the report said broadband penetration on fixed lines still lagged behind the best-performing countries.

Environmental infrastructure, where substantial investment and progress has taken place, still has some ground to make up, the report noted.