Dublin's traffic congestion is now believed to be costing the economy more than £500 million a year, the new president of Dublin Chamber of Commerce Mr Alfie Kane said yesterday. He said that the overall cost of traffic associated problems to the Republic is thought to be around £2.2 billion.

Speaking as he assumed his role as president, Mr Kane reiterated the Chamber's call for the establishment of a Greater Dublin area authority with institutional and financial powers to deliver on the critical areas of transport, housing and infrastructure.

At present, Dublin is managed by many government agencies but no one agency has overall responsibility, he said. This has led to poor planning, a transport system which is inadequate to meet the needs of a modern capital and an infrastructure which has failed to keep pace with the overall growth in the economy, he said.

"The reality is there has been enough talking and not enough action," he said. "We have a sufficient understanding of the city's transport requirements and our objective now should be to develop the necessary momentum to make it happen."

Action is urgently needed on the proposed fast rail link to Dublin Airport, which has an indicative timetable for completion by 2010, he said.

"This date must be significantly brought forward," he said.

He added that the shortage of labour and affordable housing could also undermine the competitiveness of Dublin as a location in which to do business.