The value of North-South trade could be trebled to £6 billion if structural and logistical obstacles to cross-Border commerce were removed, an Irish Business and Employers Confederation (IBEC) spokesman said yesterday after launching a report on the problem.

Mr John Kenna, chief executive of the IBEC/Confederation of British Industry (CBI) Joint Business Council, said an analysis of similar sized economies trading with one another had highlighted the potential for developing partnerships and increasing links on both sides of the Border "in an increasingly competitive global market". "You need political stability and the peace that we are working towards as a foundation for a more rapid expansion of total business links on the island," he said. The council's position paper highlights the need for developing a joint tourism policy for "the world's fastest growing industry".

Greater co-operation is called for between the Republic's Office of the Director of Telecommunications Regulation and the North's Oftel office to achieve "a seamless telecommunications infrastructure". Currently, such difficulties exist as a diverse range of business directories, non-uniform telephone dialling codes and limited coverage of toll-free dialling.

Mr Kenna said that the joint development of information technology on an island basis was crucial to attracting future investment.

Other areas requiring mutual development include transport links and shared freight distribution centres, energy policies, and education and training. "Logistics is a key issue for competitiveness," he said. The report will be a reference point for the Irish and British governments and the Northern Assembly in evolving policies on economic development. Mr Kenna said it was the first non-government report issued on North-South co-operation under the Belfast Agreement. Although trade had been at a low base five years ago, it had grown by 56 per cent between 1993 and 1997, "well above the growth of either economy". Another of the council's objectives is to develop eastwest initiatives, accessing Britain and the Continent.

Mr Kenna added that both business communities would have to live with the reality of a sterling area within a larger euro zone. But technical assistance should be provided to affected firms. He was hopeful that significant progress would be made within five years.

"Things like transport take a long time to happen, and energy links and links between industry and education establishments," he said.