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THERE IS much effort and a great deal of hope involved in the US investment conference planned for Belfast in May. First Minister Dr Ian Paisley regards it as an event of such significance that it warrants his remaining in office until its conclusion.

And US President George W. Bush has promised to send senior personnel to the conference, which the Taoiseach describes as a once-off opportunity for Northern Ireland to attract global investors from whom it has not benefited over the last 40 years. Unfortunately, given the state of financial markets in the US and elsewhere, the timing is less than propitious. In addition, the best that can be said about the recent British budget is that it did not weaken the case for investing in Northern Ireland, but it did nothing to boost it. The tax rate for small companies is rising from 20 to 21 per cent and a further increase to 22 per cent will come through next year. This will have a negative effect on job-creation in the North which relies heavily on the sector. It is estimated that 90 per cent of the 57,000 VAT-registered small businesses in the North employ fewer than 10 people.