The construction industry has asked government to consider giving "soft loans to fund the infrastructure costs for the duration" of residential developments. The loans could be repaid when the sale of units are closed, the Construction Industry Federation (CIF) told the commission on taxation.

It made the suggestion because developers are required to pay upfront for the development of infrastructure and ancillary works before they can sell residential units. The downturn in the housing market and credit crisis mean that "banks are unwilling to support development expenditure necessary to create the initial impetus required for development projects. The result is a stagnant residential construction sector under pressure from lenders to improve liquidity".

An alternative to the soft loans would be to reduce developer charges and increase user charges, it said.

The CIF has also warned that listed buildings could "be allowed to decay for want of remedial expenditure to make them more attractive places to live and work". It wants tax incentives introduced to ensure their upkeep.

It also called for capital allowances for buildings to be widened to include all buildings used commercially and to encourage their modernisation. It said pension funds buying commercial property should be given a rebate or exemption from stamp duty. It also proposed that the clawback on affordable housing be extended "indefinitely and in full" to create an ongoing fund for government to continue the scheme.

The CIF wants the PAYE tax credit extended to proprietary directors and their spouses, and the employers' ceiling on PRSI reinstated. It also asks that homeowners be given income tax rate credits to make their homes more energy-efficient.