Wilson Outlines Executive Cuts Responses

Cuts in public spending by Westmintster's Conservative and Liberal Democrat coalition are presenting significant challenges for the Stormont Executive.

The Finance Minister, Sammy Wilson has responded to the Chancellor of the Exchequer's statement which set out details of how UK public spending will be cut by £6bn.

Mr Wilson said: "I am obviously disappointed that there has been a further £127.9million net reduction in the funding available for public services in Northern Ireland, on top of the £122.8million reduction imposed by the previous Government in the 2009 UK Budget.

"Although I recognise the need to reduce the level of UK public sector borrowing, the cut in public spending will only be viewed as a token measure by the financial markets but has the potential to have serious implications for the delivery of public services.

"I believe that it is more important to have a credible plan for deficit reduction than this crude measure and await with interest the Chancellor's emergency Budget due on 22 June," he said.

Setting out how he intends to respond to the reduction in funding the Finance Minister stated: "Whilst the flexibility to defer the cut in funding until 2011-12 is welcome, the Executive will need to take the broader financial environment into account in deciding whether to avail of this option.

"In particular, although it will be difficult for departments to make further savings in 2010-11, because we are almost two months into the financial year, it is essential that we do not simply shift the burden to the 2011-12 financial year when resources are expected to become significantly more constrained, following the outcome of the 2010 Spending Review this autumn," he said, noting that he needs to consider the overall level of resources expected to be available to the Executive.

"The Executive has delivered for all the people of NI over the past two years and I am confident that it will continue with its good work in spite of the challenging financial conditions," he insisted.

However, this will only be possible if the Executive takes a pro-active approach to issues such as the current inefficient structure of Government as well as broader questions in respect of the delivery and funding of public services.

"My recommendations in response to the cut in public spending announced will be considered urgently by the Executive.

"I am awaiting further clarification on some technical issues such as the split in the reductions between current expenditure and capital investment funding. When received, I will engage with Executive colleagues," he said, this week.

See: Measured Backing For Health Cuts

(BMcC/GK)