Congestion smothering Perth's business community
25 November 2010
Businesses in Perth say growing congestion is slowly choking the economy and slicing into their profits and productivity according to a survey of the RAC’s BusinessWise* customers.
The findings of the survey are consistent with research from BITRE that puts the cost of congestion on the WA economy at $1.1bn a year.
Some businesses estimated that congestion costs them as much as $100,000 each year.
The survey of 243 businesses found that some businesses were now being forced to turn down work opportunities because of the worsening impact of congestion.
Respondents to the survey listed a range of impacts that congestion has on their business, including:
- Half of respondents said there was a reduction in overall productivity in their business.
- 70 per cent of respondents believed congestion had worsened in the City over the last 12 months.
- Seven in ten businesses said it was adding to their annual fuel bill.
- Four in ten businesses said it impacted staff punctuality.
- Two in 10 businesses said they were unable to take on more work because of local gridlock.
Nearly half of businesses surveyed (47 per cent) said they had changed the way their business runs as a result of congestion with the same number changing shift times for staff to start late and finish earlier. Almost one third had rescheduled job times because of congestion.
And businesses are worried that governments don’t seem to have the answers. Fifty-six per cent of respondents said they had no confidence at all in the Government having adequate plans to tackle congestion with only one per cent saying they were very confident.
RAC Head of Member Advocacy Matt Brown said that Perth’s rapidly expanding economy and burgeoning population meant that without action the situation was only going to get worse.
“The survey shows that congestion is not just a social issue affecting commuters heading to and from work,” Mr Brown said.
“Congestion is now a major economic threat to the continued prosperity of businesses in and around Perth.
“We need a long term strategy and significant investment if we are to deal with congestion in Perth before we end up with the gridlock which is associated with cities in the Eastern States.”
Where Perth businesses slow down:
1. Tonkin Highway, Leach Highway, Horrie Miller Drive
2. Kwinana Freeway, Leach Highway
3. Graeme Farmer Freeway, East Parade
4. Mitchell Freeway, Hutton Street
5. Mitchell Freeway, Hepburn Avenue
6. Wellington Street, William Street
7. Nicholson Road, Bannister Road
8. Kwinana Freeway, Beeliar Drive
9. Reid Highway, Malaga Drive
10. Great Eastern Highway, Roe Highway
Notes to editors:
*RAC BusinessWise provides roadside assistance and support to more than 6,500 small, medium and large businesses in WA.
Download the release (pdf)