ANY downgrading or postponement of the M74 extension to Glasgow would be bad for Scottish business, according to the RAC.

The motoring organisation spoke out after a transport pressure group claimed that Lord James Douglas-Hamilton, the Roads Minister, had expressed concerns about the high cost of the motorway and had indicated that a smaller scale version might be implemented instead.

The Scottish Transport Studies Group, which is in favour of more money being spent on public transport rather than on road schemes, was commenting on a recent meeting with Lord James to discuss transport strategy.

It said Lord James was concerned about an estimated #200m bill for a five-mile stretch from the south-east of Glasgow to just south of the Kingston Bridge, to link the M74 with the M8 south of Glasgow city centre. At #40m a mile, it would be one of the most expensive roads ever built.

However, Ms Sue Nicholson, RAC public affairs manager, said the road was a badly needed arterial route which was vital to the Scottish economy, and downgrading it would be extremely disappointing.

A Scottish Office spokesman said there had been some selective reporting of Lord James's comments by the transport studies group, and that no firm decision had been taken.

The Scottish Office identified the route as being of vital economic importance but because of the cost involved it was only right to look at all options before a final decision was taken. The original scheme for the road was developed by the former Strathclyde Regional Council. Since local government reorganisation, the responsibility for such trunk routes lies with the Scottish Office.

No timetable was produced for the road, so it is difficult to know whether the Scottish Office is delaying it because of the cost implications.

Labour politicians in Glasgow have been ambivalent about the #200m road, which would mean the demolition of 27 houses, 100 commercial properties, and the removal of seven listed industrial buildings and two churches.

It would ultimately make Glasgow Airport and the Mossend Eurofreight terminal more accessible for business, and take 30,000 vehicles a day away from the city centre.