Continuing negative images of Northern Ireland in the global marketplace will hamper future growth, the newly appointed chairman of the Industrial Development Board (IDB) has said. He further warned that inward investment could dry up unless Northern Ireland's political leaders make progress in the current round of peace talks.

Dr Alan Gillespie, (47) the managing director of Goldman Sachs International, recently replaced outgoing chairman, Mr John B McGuckian.

Dr Gillespie, who has worked in the investment banking sector for 20 years, said everyone in Northern Ireland had to realise the "eyes of the world are upon us and this is a burden our competitors don't have to shoulder". Big business would go elsewhere unless the peace process remained on track, he warned. "Political development and economic progress are inextricably linked." he said.

Dr Gillespie , a native of Northern Ireland, told The Irish Times he expected the most impressive growth in Northern Ireland to come from the tele-sales industry and new call centre operations.

Dr Gillespie said one of the factors traditionally holding back Northern Ireland industry is the tendency of business people to concentrate on building their business in Northern Ireland alone.

"One of my tasks will be to emphasise to businesses the benefits of exporting and the growth potential in many of the markets outside Europe.

Dr Gillespie said he was against any marketing of Northern Ireland and the Republic as a joint investment location. He said while there might be occasional opportunities to work with the IDA, the two agencies would continue to compete against each other.

He said there were certain industries, such as the timber sector, where cross-Border initiatives might be useful, but overall the relationship with the Republic would be the same as any other European market, with the possible exception of transport links.

He did not accept the Republic's participation in the single currency would put Northern Ireland at a competitive disadvantage.

Dr Gillespie said the Republic's plan to operate a 12.5 per cent corporation tax rate from 2006 would not result in Northern Ireland losing any overseas investment.

Dr Gillespie intends to remain in his position with Goldman Sachs International, where he has been since 1986. He said the chairman of the investment bank, Mr Peter Sutherland, heavily encouraged him to take up the position.

Dr Gillespie was first appointed to the IDB board in January 1995. He became deputy chairman on November 24th, 1995.

He holds a non-executive directorship in Elan Corporation and sits on the boards of several voluntary organisations, including Co-operation Ireland. His term of office runs until the December 31st, 2000 and he will be paid an annual salary of £34,125 sterling.