The Northern Secretary, Peter Hain, has said the economies of Northern Ireland and the Republic must forge closer links if they are to prosper in an increasingly competitive world marketplace.
In a speech at Stormont, Mr Hain said the island of Ireland faced common external threats from globalisation.
Mr Hain also said the British government is to order a comprehensive review of how tax money is spent in Northern Ireland to ensure funds are not wasted.
He said the review across all government departments would examine every spending programme.
