Willie McCarter, who is stepping down as chairman of the International Fund for Ireland, tells Siobhán Creaton, Finance Correspondent, of its many achievements.

After 15 years as a key figure at the International Fund for Ireland (IFI), Derry-born businessman Willie McCarter is preparing for departure.

At the end of February he will relinquish the chairman's role to Denis Rooney. Mr Rooney is a chartered quantity surveyor and businessman from Northern Ireland whom the British and Irish governments have hailed as a skilled and able leader for the fund.

Mr McCarter will be sad to say goodbye but says he is proud of the IFI's contribution towards creating a more stable community in Northern Ireland.

The fund, which has committed 768 million to 5,500 projects in the North and border counties, was set up by the Irish and British governments in 1986 as a vehicle to promote economic regeneration and reconciliation in Northern Ireland and the six border counties.

The late US politician T.P. 'Tipp' O'Neill championed the idea after a visit to Donegal and Derry.

"John Hume brought him to see his grandmother's home outside Buncrana in 1985 and later they went to Derry. That was during the dark days of unemployment and Tipp said he would try to do something to create jobs," Mr McCarter says.

In Washington, O'Neill's quest to raise financial aid for the region was supported by President Reagan and resulted in the US government pledging $50 million (€38.4 million) for this purpose.

The British and Irish governments, which had concluded the Anglo Irish Agreement, used the money to start the IFI in 1986.

It was a controversial vehicle and, having grown out of this agreement, was viewed with deep suspicion by Northern Ireland's Protestant community.

Mr McCarter, a Protestant, recalls the fund's initial difficulties.

"It had very few friends. It got bound up in the political to-ing and fro-ing around the Anglo Irish Agreement."

In 1989, Mr McCarter, who was chief executive of Fruit of the Loom, the clothing manufacturer that was rapidly expanding in Donegal and Derry, was asked to get involved. The US clothing manufacturer had invested in Mr McCarter's women's underwear manufacturing plant in Buncrana in 1985 and had agreed to invest £18.5 million (€26.8 million) and to grow its workforce in Donegal and Derry to 3,500.

"I was up to my tonsils running Fruit of the Loom," he says. "I spoke to John Holland [ his mentor in the US] about getting involved in the fund. He said it would be very good for me and for the company."

Mr Holland ended the conversation saying: "I am sure you would be able to do that as well as run the company".

In 1992, his involvement with the fund increased when he took over as chairman.

"The fund was a subtle way to bring people from both communities together. Instead of giving them cups of tea and saying 'let's get reconciled', it used job creation to give people an economic focus. In a low-key way, the fund brought people from both communities into projects to provide a human dynamic and develop relationships that would not have existed in a divided society."

Some of its flagship undertakings include the re-opening of the Shannon-Erne waterway, while many town centres have been given a face-lift with its support.

Mr McCarter believes the fund's ability to be the first to put its cash on the table to back new projects has been a tremendous asset in terms of providing a kick-start for fresh ideas. Its role in the Shannon-Erne waterway, he says, is a good example of what the fund can do.

"When it was first mentioned, it was regarded as a completely mad project. The fund commissioned a £1 million feasibility study that showed it might work. We later put another £5 million into it and attracted other investment. If the fund hadn't put £1 million down initially, the Shannon-Erne waterway wouldn't have happened," he says.

The fund claims to have played a central role in bringing about the joint marketing of Ireland as a tourist destination by the authorities in the North and the Republic. It has also fostered closer linkages between Cork, Trinity and Queen's universities in the field of microelectronics.

"A lot of initiatives have worked but the fund's role has been forgotten," according to Mr McCarter. "I am glad that the fund is seen as a fair and reputable dealer. I have worked with very gifted people on the board and in the communities who have made a great contribution."

While US presidents have played a crucial role in supporting the peace process and the IFI's work, its contribution to the fund has been reduced from $25 million to $18.5 million under the Bush administration due to budgetary pressures.

Mr McCarter says this figure is "not half bad" and suggests that the Bush administration has been misjudged in terms of its commitment to Ireland.

"President Bush may not have the same personal interest as President Clinton but the administration has a very tangible interest in Ireland, the peace process and the fund. Support in the Senate and the House of Representatives remains extremely strong. These people are made of stern stuff. They will see things through until there is a stable society," he says.

While the peace process is currently at an impasse, Mr McCarter believes there is little danger that the enormous strides made, in terms of improving relationships and raising prosperity, will be reversed.

"I don't think it will unravel. Too many people can see the benefits. I have lived in a border area all of my life and can see a tangible change."

Mr McCarter was ousted from Fruit of the Loom in 1997 following differences with its then owner, US corporate raider Bill Farley. The exit of the McCarter family from the business was a blow for the workforce and signalled the end of an era in terms of job security. The workforce has dropped to around 500, with the entire operations to be moved to Morocco over the next three to four years.

"When it goes to Morocco, it will be after 20 years in the north- west. It did a lot of good. Fruit of the Loom led to a lot of people making lives for themselves and was influential in improving the local infrastructure. I will be sorry to see it go. I am very fond of Donegal and Derry, which now need a substantial investment."

In the future, Mr McCarter says his main interest will be in Cooley Distillery, the independent whiskey maker founded by his long-time friend, John Teeling. Mr McCarter is a director and is also on the board of Norish. He is keen to get involved in other businesses.

"I already do quite a lot of work at Cooley and am looking for more non-executive roles," he says. "I would also like to find some way of retaining the many US connections I have made over the years."

FACTFILE:

Name: Willie McCarter.

Age: 57.

Family: Married to Mary. He has three children.

Background: Born in Derry, he studied economics and politics at Trinity College Dublin and followed it with a Masters degree in management science at the MIT in Boston.

Career: After college he joined the McCarter family clothing firm in 1971, based in Buncrana, Co Donegal. In 1987, US Fruit of the Loom group took a 22 per cent stake in the company and McCarter was chief executive for 10 years. He became a member of the board of the International Fund for Ireland in 1989 and its chairman in 1992. He is a director of Cooley Distillery and a member of the board of Norish plc.

Interests: He likes walking, sailing, history and politics.

Why he is in the news: He will step down as chairman of the International Fund for Ireland at the end of the month.