According to research carried out by officials in Mr Dempsey’s department some local authorities are unable to account for more than half of their roads.

“Those were heady days,” a source said. “We were building roads for fun. God knows where they ended up. Sure a bypass intended for Waterford turned up in the Tanaiste’s constituency in Donegal.”

Mr Dempsey said the figures were unacceptable. “What will we do when the EU finds out?” he asked. He called on anyone with information on the whereabouts of missing roads to contact the National Roads Authority (NRA).

An opposition spokesman said it was fitting that many roads led nowhere as “the Government doesn’t know where it is going either”.

The by-pass was officially opened yesterday a full 10 months ahead of schedule. Officials are furious and concerned that the Waterford by-pass could set an unwelcome precedent.

“This will not be tolerated,” a government spokesman said. “We have asked the National Roads Authority to investigate the clear lapse in procedures that allowed this to happen.”

“These are difficult times for everybody,” the spokesman continued. “If we get rogue contractors bringing efficiency, accountability and even responsibility to the table it makes things much harder for the majority of contractors. No expense will be spared in rooting out these selfish degenerates.”