BRITAIN and Northern Ireland are becoming an increasingly attractive places to do business in comparison to the Republic, a leading Irish economist has said.
Fergal O'Brien, chief economist with business representative body Ibec was speaking at the Confiederation of British Industry (CBI) annual economic briefing in Belfast.
Mr O'Brien used the platform to outline some of what he perceived to be the risks and opportunities posed by a possible UK exit from the European Union.
He said the business community south of the border generally considered a Brexit risky, adding that many companies were already viewing the UK as having "a better business environment".
He was referring to factors that included plans to reduce corporation tax in the north to 12.5 per cent - in line with that in the Republic - and for the rate in Britain to drop to 17 per cent.
"One of the great concerns that we see from a very healthy competitor's perspective is that the UK is a great place to start, develop and run a business," he told delegates at the event at the Malone Lodge Hotel.
"You are going to have a very very competitive corporation tax rate, almost no material difference with the Republic, much better tax regime for small businesses and a better personal tax regime.
"That is crucial for accessing mobiles skills that can help businesses that are developing.
"A lot of businesses in the Republic are looking at the UK and saying 'you know what, that's actually a better business environment'," he added.
And while those factors would likely remain whether the UK remained in the EU or left, Mr O'Brien said a Brexit did pose some opportunities for the south.
"There's a lot of conversations about what happens to foreign direct investment," he said.
"On balance, I think there may be some opportunities for the Republic, particularly in the financial sector.
"But I'm sceptical about how much of that will actually come to Dublin as opposed to Europe's major financial capitals in within the eurozone.
"In terms of US investment, I think we'll continue to do well."
Focusing on the Northern Ireland outlook, the event also heard from Bank of Ireland economist Alan Bridle who reflected on what he termed a "job rich recovery".
But he added: "Strategically, a more prosperous regional economy in the longer term will be dependent upon boosting productivity by attracting and generating higher value employment while accelerating the rate of public and private investment in infrastructure, skills and technology.
"For decades, local economic activity has largely been about sustaining levels of private consumption but a rebalance towards investment would support both demand in the short-term and the supply-side in the longer term."
The CBI's head of tax and fiscal policy Rob Fontana-Reval meanwhile said the UK was forecast "to remain among the fastest growing advanced economies, with domestic demand in a healthy state".
“But firms across the country will need to be vigilant in the face of significant risks on the radar, from uncertainty ahead of the EU referendum to volatility in financial markets and a slowing Chinese economy," he added.
