PARIS, 18/01/07 - The traffic-jams in the Randstad western urban agglomeration are much worse than in comparable urban regions abroad. A system of payment per kilometre driven should be introduced as quickly as possible, the OECD recommends.

The Dutch economy suffers greatly from the traffic problems in the Randstad, the region that contains Amsterdam, Rotterdam, The Hague and Utrecht. To solve these, pay-as-you-drive should be introduced much earlier than in 2012, according to OECD. This is the target date set by the last cabinet for introducing this system.

OECD also says Almere, the growth town east of Amsterdam, needs much better road connections with the other Randstad cities. The other roads, and also public transport in the Randstad, must quickly be lifted to a higher level, according to the organisation.

The tailback problem in the Randstad is bigger than in comparable agglomerations such as Germany's Ruhr area. The Dutch business sector could play a role in unclogging the roads, OECD suggests.

Additionally, public transport between the towns in the Randstad is sub-standard, OECD considers. Rail capacity in the region is "one of the most underdeveloped" of all metropolitan areas in Europe, in its view.

In its report, the OECD also devotes a chapter to housing needs in the Randstad. The institute writes that Amsterdam and Rotterdam offer far too little living accommodation for people on medium to high incomes. It calls on the Dutch government to liberalise the rental market faster than envisaged in the plan of former Housing Minister Sybilla Dekker - a plan that recently foundered.