INTERVIEW: Northern Ireland seeks to woo investors

By Jonathan Saul

BELFAST (Reuters) - Northern Ireland holds a major investment conference for U.S. firms this week as it seeks to attract foreign businesses to the province.

A year after Catholic and Protestant political foes put aside decades of hostility and agreed to share power in a regional government, attention is focused on opening the economy and luring foreign funds, especially in financial services.

Following are excerpts from an interview with Northern Ireland's Economy Minister Nigel Dodds.

Q: How has Northern Ireland's economy changed, particularly since the Good Friday (1998 peace) Agreement?

A: Over that period of time, we have seen a big drop in terms of the people who are unemployed. We still have issues in terms of the relatively small size of the private sector compared to the public sector.

Q: Has there been a peace dividend?

A: There is no doubt that Northern Ireland is now seen as being open for business. I think the major impediment to people considering Northern Ireland was first and foremost peoples' fears about security and stability.

I think we have seen a realization now that with the tailing off of violence and its end, and with the creation of a stable, devolved administration back in May last year, people now see a major opportunity.

Q: Are you primarily targeting U.S. investment?

A: We are targeting investment wherever the opportunities arise in those sectors that we are particularly interested in and believe we can offer a viable proposition.

I think, however, we have a great window of opportunity as far as the States is concerned. It is by far ... our biggest source of foreign direct investment anyway.

Doors are opening to us that many other regions would give their right arm to have that opportunity.

Q: With the UK government opposing attempts to lower corporation tax here, are you working on some other package of incentives?

A: The Executive here in Northern Ireland took a very strong view ... that we should aim to get corporation tax reduced because we do share a land frontier with our competitor to the south which does have a 12.5 percent corporation tax rate.

We are aware this would be a major help to us in terms of attracting certain types of FDI (foreign direct investment) which are particularly interested in profit.