Joint ventures involving companies from Northern Ireland and the Republic, aimed at "off-island" business, are to be encouraged by the Irish Business and Employers' Confederation (IBEC) in conjunction with the Confederation of British Industry (CBI).

The two bodies have a joint business council which, for the last six years, has been involved in developing trade and co-operation between the north and south. However, as well as business between the two jurisdictions, the confederations see opportunities for co-operation in seeking contracts "off island".

Next week they are hosting a conference for construction companies, where delegates will be told about opportunities in the developing world.

The limited size of the economy, north and south, means that Irish companies must think of looking overseas for business, said Mr Geoff MacEnroe, IBEC's director of the business development programme.

At present, the IBEC/CBI programme is limited to co-operation between Dublin and Belfast but the two bodies are looking at the possibility of developing an east-west programme to work in tandem with the north-south one.

The Belfast Agreement, should it lead to political stability and an end to random political violence, will have economic benefits for both sides of the Border, Mr MacEnroe said.

Mr Brendan Butler, director of the Small Firms Association, said there is ongoing co-operation between the association and its counterpart in the UK and Northern Ireland, but no formal links. The association's counterpart, the Federation of Small Businesses, has 1,400 members in Northern Ireland and 110,000 overall.