Effective and timely implementation of the infrastructure investment plans contained in the National Development Plan (NDP) are critical to prevent a marked deterioration in Ireland's competitiveness, a new report has found.

The report by the National Competitiveness Council warns that projects of strategic importance to the Republic's national transport infrastructure remain seriously behind schedule.

It states that delays in delivering planned infrastructure developments compound current bottlenecks, increase congestion costs and undermine the credibility of the NDP.

A number of key points are highlighted in the report:

The poor quality of public transport and congested road networks are reducing labour availability and flexibility.

Dramatic increases in employment, allied to expanding residential developments, are placing strain on the transport system and contributing to higher house prices.

The Republic's attractiveness for inward migration, critical to competitiveness, is being undermined.

The intensification of the skills and labour shortage threatens foreign direct investment.

The report states that the seriousness of Dublin's transport situation warrants radical action.

It supports the creation of an independent body with powers for traffic management and agency co-ordination. The existing Dublin Transportation Office lacks the powers and independence to pursue such a role, the report states.

Demand management measures should be evaluated, piloted and introduced, if found to be effective, according to the report. These should include road pricing, area licences and the promotion of flexible working hours. The report calls for the swift introduction of competition in the provision of urban bus services.

It condemns the taxi service for providing a service quality which falls "very far short" of the desired standard. It says the proposals to increase the number of taxi licences by 3,000, if implemented fully, would relax the current capacity problem.