The Chambers of Commerce of Ireland (CCI) yesterday called for the deadline for the completion of tax incentivised property developments to be extended.

"When one considers the application deadline was 31st December 2004, the current deadline of July 2006 is insufficient to allow most projects to be completed in a timely and proper fashion and within budget," Hilary Haydon, chair of the CCI's Ratepayers Council, said in a statement outlining the group's submission to the Government's tax review.

Mr Haydon also said that by extending the deadline, the Government would guard against further price inflation in the construction market as the July 2006 deadline nears and companies rush to complete projects. He also pointed out that with 14 per cent of the workforce employed in the construction sector, it is important to ensure that all projects do not end simultaneously, leaving many people out of work.

Mr Haydon's comments come as the CCI submits its own assessment of the merits of tax incentives to the Government.

At the end of last year, the Department of Finance launched a series of investigations into tax exemptions, including reliefs for property development such as mortgage interest relief. The chairman of the Revenue Commissioners has estimated that such reliefs, which are aimed at boosting economic and social development, cost the exchequer €200 million annually.

While the CCI believes the deadline for property reliefs that have already been granted should be extended, Mr Haydon said that in the future, reliefs should only be offered for specific sites to ensure more balanced growth.