A new detailed cross-Border business survey has found that there is growing confidence in the all-island economy.

Business people in the Republic and in Northern Ireland believe the economy in both jurisdictions will continue to grow over the next five years, according to the survey by the cross-Border body InterTrade Ireland and BT Ireland.

And nearly two-thirds of businesses across the island expect growth in cross-Border co-operation over the same period, the survey of 1,000 private businesses found.

This first of four quarterly business surveys was commissioned by BT and InterTradeIreland, in association with the Dublin Chamber of Commerce and the Northern Ireland Chamber of Commerce and Industry.

The survey finds that almost half (47 per cent) of businesses throughout Ireland were optimistic that their respective governments would improve business conditions over the course of the next five years. Levels of optimism were marginally higher among businesses operating in the Republic (50 cent) compared to Northern Ireland (43 per cent).

In Northern Ireland, businesses cite reduction of corporation tax as the main priority for the new Executive while in the Republic businesses view taxes on businesses and labour, and improvement in infrastructure as the two main priorities for the Government.

Less than half of businesses (43 per cent) had some kind of formal or informal cross-Border links, a trend which was relatively consistent for companies both North and South. Three-quarters of these companies had benefited from these formal and informal cross-Border links.

Among businesses that currently have cross-Border links, almost two-thirds (64 per cent) planned to develop these links over the next 12 months. Of those with no links, 15 per cent stated that they were planning to create some over the same period. In effect, just over a third of all businesses throughout Ireland, regardless of their current trading relationships, plan to develop their cross-Border linkages over the next 12 months.

InterTradeIreland chief executive Liam Nellis said he was encouraged by the findings on cross-Border trade and business development potential and delighted that the survey underlined the urgent need for the types of support offered by his organisation.