More needs to be done to make Northern Ireland's large public sector estate more efficient and sustainable, and greater priority needs to be placed on creating a shared future, are some of the key messages of a review from the local head of a major professional body.

Michael Hannaway, Chairman of the Royal Institute of Chartered Surveyors (RICS) Northern Ireland, said in his Mid-Year Report that effective management of government buildings in Northern Ireland will save millions of pounds each year and that reducing division has the potential to significantly enhance the prospects of the local economy.

Mr Hannaway, who became Chairman of the 3,000-member RICS Northern Ireland in September 2011, highlights some of the key issues for the land, property and construction sectors and for the Northern Ireland economy as a whole.

Key points include:

•More revenue needs to be raised to support capital investment in Northern Ireland to help bring infrastructure up to standard and to boost the economy through construction activity

•Effective asset management in both the public and private sectors is key to the recovery of Northern Ireland economy, so that the government estate can be made as efficient as possible and challenges in the wider property market linked to NAMA and portfolios of property controlled by banks can be managed

•Effective valuation of property is essential for the economy so that dysfunctional property markets can begin to function properly

•Greater priority needs to be placed on creating a shared future, as division costs the economy in Northern Ireland over £1billion per annum

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•Greater priority needs to be placed on reducing the environmental impact of Northern Ireland's public estate – the objective to have a carbon neutral public estate by 2016 has been dropped by the Northern Ireland Executive

•The Northern Ireland Executive needs to continue to work to address major issues in the planning system to support investment and construction activity

Mr Hannaway also highlighted that RICS believes the housing market will continue to experience downward pressure in 2012 and that there is little reason to believe the construction sector will see any change in fortunes this year. And he says that a reduction in corporation tax would be highly desirable for the local economy.

Mr Hannaway said: "The constraints on public spending, and in particular the impact of this on the construction sector, alongside the legacy of the property bubble and the current dysfunctional nature of property markets, are without doubt amongst the most significant challenges facing our economy at present.

"It is imperative that groups holding large portfolios of property, including governments, publicly controlled bodies and banks, manage these assets in a way that doesn’t compromise the recovery and the good functioning of property markets. Property also needs to be valued in a realistic way.

"There have been positives in recent months worth highlighting, including in relation to commitments to improving the planning process and in relation to positive noises made about dealing with division.

"Northern Ireland needs to continue to work to address some of the major obstacles holding back the attainment of a vibrant private sector economy, including the malfunctioning planning process, and the cost of division.

"Securing the powers to lower corporation tax and announcing them as soon as possible should also be a major priority. Much of the opposition to reducing Northern Ireland's rate of corporation tax centres on protecting the Block Grant which the Northern Ireland Executive receives from Westminster to administer services in the areas where powers have been devolved. If lowering Northern Ireland’s rate of corporation tax is going to result in a reduction in the Block Grant of £150million, or £200m per annum or £300m, in the context of a Black Grant of over £9billion, surely this is a price worth paying to help rebalance our economy, create jobs and allow us to prosper in the future.

"It will mean that we will have to be better at managing the public money that we do have at our disposal. We’ll certainly have to manage our assets and resources better. But all of these things can and should be done anyway."

The RICS Northern Ireland Chairman’s Mid-Year Report is an opportunity for the chairman to highlight some of the key issues for the land, property and construction sectors in Northern Ireland.

(CD/GK)