Forfβs didn't go so far as to call for the cancellation of Christmas yesterday but it did declare the economic party over.

With the downturn worse than expected, its annual competitiveness report said continued growth could not be guaranteed without pay restraint, greater productivity and a renewed commitment to road-building, public transport and the roll-out of high-speed telecoms networks.

Such strategies - and a host more - are already at the heart of Government policy but the focus yesterday was on delivery.

Thus, Forfβs chairman Mr Brian Patterson delivered a series of telling appraisals of the National Development Plan (NDP).

"Could do much better" would be a very watered-down summary of Mr Patterson's remarks.

If NDP stickers on buses and Luas construction hoardings are anything to go by, the road and transport projects are likely to be vaunted by the Government in its re-election campaign next year.

Mr Patterson's view, however, was that much of the plan remains at, well, the planning stage.

For example, just 33 kilometres from 1,369 kilometres in road projects, have been completed and high construction price inflation has already kicked in.

Some 17 of the 67 project were already delayed and construction had commenced on only 14.

The scene was no better in telecoms, where six major projects are far behind schedule.

"Extremely disappointing," said Mr Patterson. What makes this worse, however, is the external situation.

Driven by recession in the US and stodgy conditions in Europe, the Irish slowdown has been sharper than projected.

The Republic is all the more vulnerable because wage increases, faster than in any other OECD state, are not matched by productivity gains.

Mr Patterson's analysis was stark: "This situation presents a serious problem, jeopardising both employment and incomes, particularly given the current global economic downturn and its threat to existing business, reduced growth opportunities and the tightening of margins.

"The possibility of adverse changes in exchange rates exacerbates these difficulties."

What is more, the public finances are already suffering - hence the call last week on Central Bank and social insurance funds to balance the Budget.

"Tax revenue growth is well below expectations, while public expenditure has been growing rapidly and the demand from many sectors of society for an even faster rate of increase in public expenditure remains strong.

"In these circumstances, it is vital to maintain a balance between such demands and the capacity of revenue-generating sectors of the economy to deliver revenues required without undermining their competitiveness." Needless to say, social partnership between business and the trade union movement was also crucial.

This Mr Patterson outlined in more than 40 recommendations in a presentation yesterday morning to the Taoiseach, Mr Ahern. In doing so, he demolished more than a couple of myths.

Yes, the £40 million (€50.8 million) committed to broadband networks in the Budget was an enormous sum. But it was not enough, Mr Patterson said.

Up to £400 million might be needed, though that was only a rough estimate.

What was required was a move similar to the opening of secondary education to all in the 1960s. "You can analyse the thing to death. You just need to do it."

On education, Mr Patterson was no less strident.

"If you ask a man or woman on the street, they'll say Ireland has one of the best education systems in the world. Not so."

If moving to a higher value-added, knowledge-based economy was desirable, the education system had to deliver. Improvements in scientific educations were particularly necessary.

Delivery, of course, is in the gift of Mr Ahern and his colleagues, although Mr Patterson accepted that not all his demands would be met. "Competitiveness is the only security for all of us. The Government can help or hinder that by whatever it does."