For too long resources have been used to fuel current consumption and meet short-term needs, and there has been insufficient drive to achieve value for money

Mark Ennis CBI NI chairman

It estimates that many of the province's services are so badly underfunded that the government needs to spend an additional �250m each year over the next ten years.

The report details a development strategy which the CBI is recommending Northern Ireland's ministers, outlining the investment it sees as necessary to develop an infrastructure to support a modern economy.

It proposes a range of steps which it says should be taken to address the infrastructure deficit, starting with the need to ensure that existing resources are being wisely spent.

'Value for money'

CBI Northern Ireland chairman, Mark Ennis said: "We clearly need to invest more resources in building a world-class infrastructure.

"For too long resources have been used to fuel current consumption and meet short-term needs, and there has been insufficient drive to achieve value for money."

There will be little sympathy for the Northern Ireland case until we indicate a willingness to put our house in order

CBI NI chairman

He said the CBI believed the Stormont executive had the ability, provided it had the will and commitment, to take bold and innovative action needed to address much of the existing infrastructure deficit.

Such investment was "crucial" to improving public services, Mr Ennis said.

"There may well be a case for arguing for an additional one-off input of Exchequer funds, but there will be little sympathy for the Northern Ireland case until we indicate a willingness to put our house in order."

'Inefficiency'

The strategy is focused on releasing an increased level of public funds for investment and to ensure that opportunities to tap into the resources and ideas in the private sector are fully utilised.

To free up money to upgrade Northern Ireland's infrastructure the CBI suggests selling surplus land, creating a development bond and appointing a value-for-money minister to help raise extra funds.

Controversially, the report also suggests absenteeism and inefficiency in the public sector along with excessive administration in the health sector add unnecessarily to public expenditure.

It also suggests looking at public procurement, the use of e-commerce and benchmarking across public services.

'Private partnerships'

The report also calls for a commitment to the potential that the Private Finance Initiative and Public Private Partnerships can bring.

The CBI argues that PFI/PPP's could help accelerate an investment programme and deliver best value while at the same time develop opportunities to create new businesses and opportunities.

The public sector owns a significant landbank and property portfolio, although it is far from clear whether they are being used to maximum value or benefit for the people of Northern Ireland, the CBI report continues.

It also suggests the options of selling, or selling and leasing back, as a way of better utilising resources, enhancing employment prospects and improving the region's competitiveness.

It also recommends a review of the options for a Northern Ireland Development Bond, including an assessment of the potential sources of revenues.

The report said there was little scope for raising additional revenue from the regional rate - other than to fund necessary investment in water and sewage infrastructure.

But it said there was "some potential" in the concept of introducing congestion tolling "provided it is implemented as part of a wider package of measures to address transport requirements".