Business counts high cost of congestion

Traffic congestion is forcing Perth businesses to turn down work, with many facing higher fuel costs, lower productivity and problems recruiting staff.

A survey of more than 400 small to medium Perth businesses also found that many employees faced an erosion of their work-life balance, with congestion forcing many to start work earlier and finish later.

Almost 70 per cent of respondents to the RAC BusinessWise-CCI survey reported that staff punctuality had suffered and stress levels had increased, resulting in more sick leave, staff fatigue and lower motivation.

Since a similar survey last year, respondents indicated that congestion was taking an increasing toll on profitability and productivity.

Businesses put the cost of congestion on them at between $200 and $650,000 in increased fuel consumption, loss of productivity and reduced staff punctuality.

More than one third of respondents said they had lost existing work due to congestion and 53 per cent said it had forced them to reject new work.

"We get stress and pressure from clients who don't understand that times can't be given accurately," one business said .

Many businesses said they had taken action to reduce the impact of congestion by using alternative routes, allowing more time for deliveries and scheduling deliveries outside peak hours.

Congestion also emerged as a factor in staff recruitment and retention, with some workers indicating that traffic conditions made workplaces less attractive.

One business said it was unable to employ staff who lived north of the river because of travel times being affected by congestion.

When asked what could be done to reduce congestion, four in five businesses said roadworks needed to be better managed.

Bbout the same number said new intelligent technology needed to be introduced to better manage the existing road network.

Only one in four respondents recommended the introduction of toll roads or congestion charges.

"Toll roads and user charging will just increase the cost of transport thus increasing the price of goods in the most expensive city in Australia," one business said.

RAC head of advocacy Matt Brown said it was clear that congestion was not just about being stuck in traffic.

"There is a real flow-on effect that is impacting businesses," he said.

Chamber of Commerce and Industry chief executive James Pearson said productivity was suffering because of congestion. "Governments need to be smarter about which transport projects go ahead and how they are funded," he said.