The Chambers of Commerce of Ireland (CCI) yesterday called on the Government to abolish tax reliefs for low-risk investments and provide incentives for people to support the growth of new enterprises.

In its pre-budget submission, the CCI said Minister for Finance Brian Cowen should use the budget as an opportunity to rebalance the fiscal incentives away from safe investments such as property, and encourage those with surplus funds to invest in more risky endeavours that will help the economy grow.

"We have gone through the period of growth built on foreign investment and are now existing on buoyancy in construction and consumption," said CCI chief executive John Dunne.

"The future is going to depend on our ability to grow our own indigenous sector," Mr Dunne said.

He said in order to promote this sort of growth, the Government needs to provide incentives for people to invest in new enterprises and research and development activities.

"If we don't make these changes now, it will be too late," he said, referring to the lack of investment currently going into research and development at Irish-owned companies.

He also said tax relief on property was no longer needed and that the Government should consider bringing in a local tax based on the value of all property sites.

In return for the introduction of a property tax, the CCI is recommending the standard VAT rate be cut to 18 per cent from 21 per cent, that average-priced houses be exempt from stamp duty, and that commercial rates be abolished.