Aggressive action by the authorities is needed to target the price of housing sites, the employers' group IBEC said yesterday.

The group said the remit of the proposed National Infrastructure Agency should be broadened to include the specific role of reforming national housing strategy.

In a report Housing Policy: A New Approach Needed, the group said the cost of housing in the Republic was now placing strains elsewhere in the economy.

"Tinkering with the existing model for the provision of housing in Ireland will not solve the fundamental problem. A new paradigm for the administration and control of the provision of housing in Ireland is now required which will be better adapted to the efficient functioning of the Irish economy within the euro zone."

The price of housing in Dublin exceeds that of major cities in competitor countries throughout Europe.

The cost per square foot of an apartment in Dublin can be twice that of equivalent apartments in Germany, France or Italy, according to IBEC.

"Housing strategy and policy should operate in a way that counters expectations of exceptional price rises and facilitates a speedier, more efficient response between housing supply and demand in the future."

The group called on the Oireachtas All Party Committee on the Constitution to move swiftly to develop a new approach to planning which redresses the balance between the interests of individuals and the community in relation to property rights.

Tax policy should promote a stable fiscal environment that promotes liquidity and the release of under-utilised assets, according to IBEC.