The Irish Concrete Federation is concerned that 60 per cent of existing quarries may not meet the specifications of planning legislation now going through the Oireachtas.

And the federation, which represents 90 per cent of aggregate and concrete producers and whose sector accounts for 90 per cent of the construction industry's output, says this could have major implications for the completion of the National Development Plan.

Mr John Maguire, federation chief executive, said yesterday that "about 60 per cent of our quarries have been operating for 40 to 50 years and enjoyed legal recognition by pre-1964 status. The crunch could come, under pressure from local communities, that local authorities might make them apply for planning permission, working time restricted on when they start and finish and restrict the tonnage that could be produced.

"It would be a disaster for the industry and the economy if the demand for our products could not be met. If capacity is restricted by closures or res tricted working hours or tonnages produced, there could be a serious impact on the industry. If one is closed down, another is going to have to be opened to meet the need.

"It's very serious, very critical for us. We're satisfied the Minister [for the Environment] and local authorities have the message."

But he said he recognised that while local authorities were among their biggest customers, they also had an obligation to enforce planning law. "It's a difficult balance to get right," he acknowledged.

At a news conference in Dublin yesterday, the federation released a study commissioned from KMPG, entitled A Strategy for the Concrete Industry in Ireland. It shows the £1.3 billion (€1.65 billion) industry to be one of the most competitive sectors in construction. It has doubled its capacity and output over the last five years and increased industry revenue by 40 per cent between 1997 and 1999.

Output volume increases, not price increases, accounted for the major portion of growth, as product prices rose by 2.4 per cent in the past two years. While input costs have been increasing by 4 per cent annually over the last four years, product prices have been rising at around 1 per cent each year.

The industry was working at 83 per cent capacity in 1997-99, but would add another 13 per cent capacity in the current year and increase capacity by 25 per cent over four to five years.

The industry had the capacity to meet the requirements of the National Development Plan for housing, schools, hospitals and roads, Mr Maguire said.