Economy thrives as violence ebbs Empey

Fortunately for the Industrial Development Board for Northern Ireland, most French people assumed that once the Belfast Agreement was reached, Northern Ireland's problems were over.

Members of the Northern Ireland Executive were happy to strengthen that inaccurate impression yesterday during a visit to Paris sponsored by the IDB and the French business managers' association, MEDEF.

"The trend is that the violence has been going down and the economy is going up," said the Minister of Enterprise, Trade and Investment, Sir Reg Empey. "They think that by and large we have solved most of our problems; they are not focused on the difficulties."

In a tactic not likely to be appreciated by the Spanish embassy, he repeatedly noted that Spain - not Northern Ireland - now had the worst political violence in Europe. "They have bombs that go off," Sir Reg said.

France is already Northern Ireland's sixth export market, accounting for 1.6 billion francs (€244 million) in sales in 199899, Sir Reg said. "We want that market to grow." French investment in the UK "is at an all-time high", mainly because of higher social costs in France and the flexibility of the British labour market.

"We are no longer an exception. Within the past year, there have been two major French acquisitions in Northern Ireland," he added.

The French weapons manufacturer Thales - formerly Thomson CSF - increased its ownership of Short Missiles from 50 per cent to 100 per cent last year. Thales manufactures vehicle-launched and shoulder launched missiles for NATO in Northern Ireland.

"They also sell to the Third World," Sir Reg added. "Basically they make all anti-aircraft defence systems - including the Star Burst and Star Streak missiles for the British army. They are the world leader in very short-range air defence."

A more politically correct investment was the French construction company Lafarge's preChristmas acquisition of the Blue Circle Cement Company, which has two plants in Northern Ireland. Despite the unfavourable euro to sterling exchange rate, Northern Ireland has attracted more than Ffr2 billion in inward investment from French companies over the past five years, Sir Reg said.

Michelin has owned a bus and truck tyre plant in the North for more than 30 years, Pernod Ricard makes Bushmills whiskey and Montupet manufactures automotive and industrial products.

In the past 10 years, Bombardier Aerospace has invested Ffr10 billion in its Northern Ireland operation.

In his after-lunch sales pitch, Sir Reg promised MEDEF executives "significant bottom-line benefits" if they invested in the North. He emphasised the youth and high level of education of the North's workforce. Northern Ireland is the UK's fastest-growing e-business region - as well as the fastest-growing regional economy in the UK for the past decade.

The cheery statistics kept coming: the North's industrial production increased 18 per cent during 1995-99, compared with 3 per cent for the UK as a whole and 10 per cent for the EU.

Sir Reg expects no concrete results from the four-day visit to France and Germany. "It's basically informative, to raise our profile - not a trade mission as such," he said. "We're asking people to consider us as a trade and tourism destination."

He is particularly eager to court French investment in information and communications technology.

Communications giant Alcatel would be a plum target. But wouldn't that put Northern Ireland in competition with the Republic?

"We are in competition with absolutely everybody," Sir Reg replied. "With all of the European regions. This is a battle that never ends."