THE Royal Institution of Chartered Surveyors (RICS) has called on the newly-elected Labour Government to adopt a forward-thinking set of priorities to take the South East forward.

The RICS says the first task should be the production of a properly prioritised and funded infrastructure plan to tackle the on-going issue of transport inadequacies and match supply with demand, to deliver a strong and vibrant environment for economic growth.

Trevor Hines, RICS South East regional director, said: "The stop/start policies surrounding infrastructure projects such as Crossrail, airport runway capacity in the South East and the road network are totally unacceptable.

"The South East is the country’s economic 'engine room' and years of uncertainty and underinvestment have been a disincentive to business planning."

Second on the RICS priority list is a call to overhaul the PFI process, with the key proposal being that the Government should pay back costs incurred by firms short listed for PFI contracts.

PFI, the process by which risk and project management is transferred to the private sector for large public procurement initiatives such as road building, has accounted for, on average, 12 - 15 per cent of all UK public sector investment since 1996. This rose to a massive 30 per cent in 2003/4, and a bigger increase is yet to come.

Mr Hines continued: "The high cost of bidding for PFI deals acts as a barrier to many, particularly smaller firms, which means the client and, indirectly, the public are not getting best value from the full market of ideas and talent.

"A rebate would incentivise more companies to put themselves forward."

Across the South East employers are struggling to find the right staff or are facing rising wage bills as employees demand salaries to help meet higher living costs.

They are also finding it hard to secure affordable business premises in town and city centres, with large tracts of what was once commercial property being redeveloped for residential use.

Mr Hines added: "For the South East to flourish we must provide a business environment that enables companies to choose sustainable options.

"We are in danger of creating 'blandsville' and must bring together all the agencies responsible for delivering a dynamic economy if we are to help companies flourish."

Businesses across the South East are experiencing skills shortages, especially in industries such as construction and engineering. As a result the RICS has called for a greater emphasis on both professional and vocational training.