Innovative tax incentives for commercial developers could stimulate investment in Northern Ireland and underpin job creation in its major cities, according to property and development chiefs.

Mr Noel Smyth, chairman of Dunloe Ewart, believes the right conditions must be created to encourage developers to invest their time and money in the North. "The Northern Ireland Assembly must address certain issues and they need to create incentives for people to invest in the North. Tax breaks alone are no good because developers will want to know that if they commit to a development it will actually take place. At the moment the infrastructure is not in place to encourage developers," Mr Smyth said.

He said the North's overburdened planning system was one area for concern and that Belfast was losing out on potential jobs because of the gridlock in the system. "There has been no major retail development in Belfast for 15 years and the fact is Belfast city centre offers great potential because the market is depressed at the moment."

Laganside Corporation, the Government-backed development body, also believes tax incentives would help encourage developers to view Belfast as an opportunity. Mr Mike Smith, the chief executive of Laganside said Northern Ireland could learn from success of the Republic's approach to fiscal incentives for investors.

"There is evidence in Dublin that fiscal tax measures attracted new investment but the challenge for Northern Ireland is to convince the United Kingdom treasury that we should be treated differently from the rest of the UK with regards to tax incentives," he said.

Both men were among the key speakers at the International Development Research Council congress.