Business body CBI and its Republic of Ireland equivalent, IBEC, said obstacles to cross-border working also needed to be removed to take advantage of the all-island labour market.

They spoke ahead of the annual Ibec-CBI Northern Ireland all-island economy conference, which takes place in Dundalk, Co Louth on Thursday.

Angela McGowan, director of CBI Northern Ireland, said the conference was taking place at an important time for the all-island economy, following restoration of the Executive.

She said: “Significant shifts in geopolitics, supply chains, energy sources and labour markets, make it even more important for business and policy makers to collaborate on the best way forward for the All-Island economy.

“With good co-operation in a range of areas combined with high levels of ambition, we can maximise the economic benefits and build long term resilience for both economies.”

She said firms were “hungry” to reap the benefits of an all-island economy.

“These advantages include: a bigger market for sales and supply chains, a greater labour market pool, improved connectivity for trade, tourists and workers as well as access to a secure supply of cheaper green energy.

“By working together, we are much more likely to deliver that economic prize”.

Ibec chief executive Danny McCoy added: “There is a lot of political change happening both on the islands of Ireland and Britain this year, and it is important we push forward with an all-island economic agenda that can deliver real opportunities on both sides of the Irish border.

“With restored political stability in Northern Ireland and a functioning North-South Ministerial Council (NSMC), businesses across the island of Ireland are looking to policies that can maximise economic benefits from cross-border cooperation.”