THE recent upsurge in the number of killings and beatings in the North has created a "chili factor" among potential investors, according to an organisation whose job it is to attract new business to west Belfast.

The Phoenix Trust, a cross-community group dedicated to the economic and social regeneration of the area says it has evidence that the renewed violence is making international investors think twice.

The trust's executive director, Mr Eamon Hanna, said he had received a memo from the Irish-American businessman, Mr John Cullinane, which underlined the serious long. term effects the violence could have on the local economy.

"John Cullinane is hoping to raise $30 million in venture capital for investment in Northern Ireland ... it is a difficult process at the best of times but in his memo he made the point that the renewed violence is having a chilling effect on potential investors," according to Mr Hanna.

He said Northern Ireland was competing for funds in a very competitive market against countries which could offer social and political stability.

It was vital to avoid the impression that "the bad old days" were back again, Mr Hanna added.

"The people responsible for the violence are causing harm to the most disadvantaged sections of the community. The areas where this violence is taking place are often the areas where investment is most needed."