The new government should "fast-forward" key projects in the National Development Plan to avoid a decline in the engineering and building sector, the Small Firms Association said yesterday.

Claiming that up to 20,000 positions were at risk, association chairman Mr Pat Delaney said the 10 biggest projects should be identified and resourced urgently.

He also said the planning system should be reviewed. In a statement, he said: "The Irish planning system has become part of the infrastructural logjam in a variety of areas, including roads, public transport projects, waste, sewage and water supply.

"We need action to reduce the gridlock in the planning system and changes to both the physical and administrative structures," he said. "Despite committing more than €53 billion to solve our development constraints, we have prohibitive housing and rental costs, a public transport system in constant chaos, inadequate waste management and distribution systems which are strained to capacity by a road network which is grinding to a halt."

With employment under pressure, Mr Delaney said the development plan was a means to enhance the State's competitive position and take a balanced approach to regional development.

He added: "Local authorities need to be reminded that 'national' development is just that - a national plan, which cannot be made subservient to local plans."

"The orderly and efficient disposal of waste was a growing problem which must be tackled," the SFA chief said. "The current inability to deal with waste is a threat to our physical environment and the development of the enterprise sector and tourism. Ireland needs an integrated waste management approach, combining prevention, recycling, thermal treatment and landfill."

Mr Delaney said other EU states - such as Denmark, Sweden and Portugal - were capable of planning and commissioning major projects at the fraction of the time required in the Republic.