A report from the National Competitiveness Council has said investment in Dublin and the other main cities should be a priority to boost the country's long-term competitiveness.
Its report says the current funding method for local authorities - through central government and commercial rates - is unsustainable. It calls for other methods, such as charges on services such as water, to be considered.
It backs an annual property tax, but warns against combining this with 'sizeable' stamp duty levels.
The council report also says the introduction of a directly elected mayor of Dublin must be shown to improve accountability and deliver value for money. It says the introduction of similar offices in other cities should be postponed until the Dublin post has been set up and tested.
The NCC says there should be higher residential density in Irish cities and a 'more integrated' approach land use and transport policies.
It says Irish cities are relatively expensive for businesses and citizens. The NCC refers to its study last year, which found Dublin to be the second most expensive of 14 cities for doing business. Dublin was also the 13th most expensive city in the world in a cost of living survey carried out by the Economist Intelligence Unit this year.
The NCC says Irish cities are highly car dependent, adding that the delay in bringing in integrated fares, ticketing and smart cards for public transport has been unacceptable. The report also points to slower broadband speeds than in many other European cities.
