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A CAPITAL IDEA FOR ECONOMY; nibusinessguy Executive urged to spend.

CAPITAL expenditure is needed to kick-start the Northern Ireland economy, it was claimed yesterday.

The Executive was urged to make capital projects a priority if current efforts to lower corporation tax do not bear fruit.

Royal Institution of Chartered Surveyors chairman Michael Hannaway said any public money earmarked to fund a tax reduction must be put to the best alternative economic use if the current campaign fails.

And he reckons capital expenditure would be the most economically significant measure.

Mr Hannaway said: "It is estimated that lowering Northern Ireland's rate of corporation tax would result in a substantial reduction in the block grant of PS300million or more.

"In the context of a block grant of more than PS9billion, surely this is a price worth paying to help rebalance our economy, create jobs and allow us to prosper in the future.

"However, if a reduction in corpo-ration tax is not secured, the money that would have gone towards funding the reduction must be used in the best possible way to support the economy.

"We believe using it for capital expenditure would be the correct course of action."

At the end of his first year at the helm of RICS NI, Mr Hannaway said he also felt effective asset management in both the public and private sectors is key to the recovery of the Ulster 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.

His wish list also includes an effective valuation of property so that "dysfunctional property markets" can begin to function properly and the Executive addressing major issues in the planning system to support investment and construction activity.

The RICS NI chairman further said that greater priority needs to be placed on creating a shared future as division costs the economy in Northern Ireland over PS1billion per annum.

to Using cash for capital expenditure would be correct course of action MICHAEL HANNAWAY

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CALL 3 Michael Hannaway said kickstart growth
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Title Annotation:Business
Publication:The Mirror (London, England)
Geographic Code:4EUUK
Date:Nov 15, 2012
Words:345
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