Low-cost imports in a global recession could threaten up to 40 per cent of Northern Ireland's employment, a PricewaterhouseCoopers economist, Mr Paul Rowan, said yesterday.

Speaking at the annual Northern Ireland Economic Conference, he said that although the local economy had outperformed the British average for most of the 1990s, the volume and quality of inward investment needed to be dramatically increased.

Tax incentives needed to be evaluated as an alternative to grants "and collectively they must achieve startling new industrial development targets", he said.

The Minister for Enterprise, Trade and Employment, Ms Harney, said that Northern Ireland had tremendous economic potential, with a well educated and adaptable workforce, a good transport infrastructure and good air and sea links.