The Society of Chartered Surveyors has predicted that 40,000 more job losses in the Irish construction sector throughout 2010. This means that the number employed in the sector will fall below the 100,000 level, last seen in 1995, from a high of 269,000 in mid 2007.  The SCS also said it supports a property tax.

The President of the Society of Chartered Surveyors, Ken Cribbin, has described the Government’s failure to tackle the unemployment crisis in the sector as "totally unacceptable" and in his speech at the SCS’s annual dinner he pointed out that while the Government had taken action to tackle the banking crisis and to stabilise the public finances it had failed dismally to provide leadership to the property and construction industry and the wider economy had suffered as a result. "As a matter of urgency the Government needs to tackle this unemployment crisis. That involves real political leadership and engagement and we need it now," Cribbin said.

The SCS has called on the Government to appoint a chief adviser to head a new Construction Industry Consultative Council. This body would be tasked with promoting a sustainable industry over the medium to long term.

"At present responsibility for the Public Capital Programme is dispersed across nearly all government departments. A ‘Construction Chief’ would oversee the delivery of the Public Capital Programme and take advantage of the lowest tender prices in a decade to get this sector and the country’s economy working again" he said.

Cribbin pointed out that at an optimum level of output, the sector could support direct employment for 150,000 people.

In his speech, Cribbin also reiterated the SCS’s support for an annual property tax. He said that as long as the tax was introduced in a fair manner with the money raised, ring fenced to fund local authorities, the Society would support it.

"While the introduction of a property tax would be controversial and deeply unpopular, recent events showed that local authorities needed proper funding. Recently we have seen local authorities all over the country struggle to deal with issues such as flooding, road maintenance and water supply. This tax is badly needed to ensure local authorities can meet their obligations and provide a professional service," he concluded.

The guest of honour at the annual dinner was the President of Ireland Mary McAleese. Over 800 guests from all over the country attended the event.

It was at this annual event in 2004, when Bank of Ireland economist, Dan McLaughlin, declared the dawn of "a Golden Age of Construction."

Also on Thursday, it was reported that overall returns for Irish commercial property fell by -19.2% in 2009. While still negative, the performance for the year is much improved on the -36.4% overall return movement recorded in 2008, according to the latest Irish Property Index by Jones Lang LaSalle.

The performance of overall returns steadily improved during each quarter of 2009, reducing from -8.9% in Q1 09 through to the lower negative movement of -1.8% in Q4 09. The pace of decline in the market is slowing and is moving steadily back to a period of positive growth. "This indicates some stabilisation of the market which is a positive sign for commercial property in Ireland," commented Dr.Clare Eriksson Head of Research with Jones Lang LaSalle.

Capital values in Ireland dropped by -25.6% in 2009. Again, the performance of capital values in the market steadily improved during the year culminating with a change of -4% in Q4 09. Capital values in Ireland have now fallen by -55% from their peak in Q3 2007. Industrial property experienced the sharpest decline in capital performance during the year of -7.2% in Q4 09 and -29.1% in the year to December. Capital values for offices fell by -3.2% in Q4 09 and by -25.5% during 2009. Retail capital values dropped by -24.7% in the year to December 09 and by -4.1% in Q4 09.

Rental values for the entire Index portfolio fell by -21.8% in 2009. This compares to a movement of -0.3% in rents for 2008 and confirms that declining rents were one of the main features of the Irish commercial property market during 2009. Industrial rental levels were the hardest hit falling by -24.8% in the year to December 2009 and by -13.5% in Q4 09. Office rents dropped by -6.6% in Q4 09 and by -23.8% during 2009. Retail rental values were -5.5% in Q4 2009 and -17.8% in the year to December 2009.

Income levels in the Index had a marginal yearly decease of -0.8% in the year to December 2009 but grew by 1.3% in Q4 2009. This is reflective of the active asset management undertaken by landlords in a bid to negate the effects of voids and rent free periods and maintain cash flows by agreeing to short term lets and renegotiating rental agreements.