Fresh hope for Northern Ireland economy

Business is relieved the executive and assembly are now likely to survive

By the BBC's Mark Gregory

Business leaders in Northern Ireland have welcomed the IRA's move to begin decommissioning weapons.

A statement from the Northern Ireland Chambers of Commerce said the easing of political tensions would help grow the economy at a time of great difficulties in the global business environment.

John Stringer, chief executive of the Northern Ireland Chambers of the Commerce - which claims to be the most representative business organisation - expressed deep relief that the executive and elected assembly are now likely to survive.

The timing was especially favourable as firms are also contending with the threat of global recession.

There is respect for the practical work of the Northern Ireland executive, which includes politicians from across the sectarian divide, in lobbying for local business interests in its short life.

Sign of peace

Mr Stringer said the IRA's move on decommissioning was the biggest sign so far that companies can count on lasting peace.

The last few years have seen a dramatic revival in the local economy, prompted by the gathering momentum of the peace process from the mid-1990's.

Employment in construction has gone up by half.

20,000 new jobs have been created in tourism.

Northern Ireland to a degree shared in the boom in high technology industries that turned the Irish Republic into Europe's fastest growing economy.

Poorest region

The recent political logjam over decommissioning IRA weapons had appeared to put that progress under threat.

Business leaders worried that any move by the British government to suspend local political institutions and restore direct rule from London would send the wrong signal to local and foreign investors.

Northern Ireland has long been one of the poorest regions in the United Kingdom.

Business confidence was devastated by the extreme sectarian violence of the 1970's which saw foreign investors staying away in droves.