NORTHERN Ireland's business community has welcomed the election of the Labour government in Britain in the hope that it could give fresh impetus to the peace process.

The chairman of the Institute of Directors, Mr Alan McClure, said that the new Northern Ireland Office ministers must put the local economy at the top of its agenda.

"Over the next five years, the Irish economy will grow at the rate of 5.5 per cent a year," he said. "There is no reason why Northern Ireland cannot do the same."

The director of the Confederation of British Industry in Northern Ireland, Mr Nigel Smyth, was one of those who believed that election of the new government could offer renewed hope for political compromise.

"We are looking forward to the new opportunities which the Labour government will present," he said, "and we hope it will bring some new momentum to the peace process, which is desperately needed in Northern Ireland."

It was a view shared by the chairman of the Federation of Small Businesses, Mr Bill Jeffrey, who said he hoped the change of government would "force local politicians to get their act together".

Mr Colin Anderson, president of the Chamber of Commerce and Industry, said Labour's landslide victory showed how the Conservative party had "lost the respect of the nation".

"We are all going to want to see what this means for Northern Ireland," he said.

"Local politicians must now sit down around the table and ask what is in it for us. There are new opportunities and they should be concentrating on making the most of them."