John Sisk & Son Managing Director, Tom Costello, said the state would profit from shoring up the scheme now, when land values are reduced and labour costs in the building industry are highly competitive.
Speaking at a Dublin conference, last week, Mr Costello said such a move would help maintain the 'world class' construction sector Ireland has developed during the last decade.
"The resource is there, use it or lose it," he warned.
Citing a recent report by the Society of Chartered Surveyors, Mr Costello said the state could eventually buy-up 40% more land for the same value as ten years ago.
Sisk, which has been in business for almost a Century and a half, is looking to international business in order to maintain its output levels.
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Mr Costello said there was a real opportunity for Irish construction skills abroad. "It is important not to lose ambition," he said.
He warned: "The skills are here now that were not here ten years' ago. I really worry that they may not be hear ten years' from now."
However, Mr Costello said firms facing desperation should not bid below the cost of a job.
Below cost tendering, he said, would 'wreck' the industry.
According to Professor John Fitzgerald, of the Economic and Social Research Institute, the building sector in Ireland grew to an extent where it was allowed to squeeze out the rest of the economy.
"Fiscal policy matters - The Government has done the wrong thing pretty consistently. The philosophy was, if you have it, you spend it, and that was not the right philosophy," said the Professor.
Mr Fitzgerald suggested the building trade had accounted for 14% of GDP in 2005/2006, the highest of any he country he had looked it.
Predicting this could now fall as low as 4%, Mr Fitzgerald said: "It is no wonder we are in a recession."
Commenting on the ongoing price falls in the property market, the Professor said: "My suspicion is prices will come down too far, and then go back up."
He hinted the turn point was still some time off.
Mr Fitzgerald said the property bubble had burst well before the international turmoil faced by banks - however, this crisis has now begun to pinch.
Speaking on last week's Budget, the Professor said its sentiments were "not nearly tough enough".
He said the Irish tax base would have to be rebuilt. Rises in government spending in recent years had been funded by property taxes and they in turn had been paid for with borrowed funds.
Mr Fitzgerald warned: "The next Century is going to be different from the last one."
(PR/JM)
