Finance Minister Warns On Future Public Spending

Finance Minister Simon Hamilton has said the next number of years in Northern Ireland will "eclipse even the last four years of austerity.

"I don’t like having to issue stark warnings about the future," he said, "but I wouldn’t be doing my job if I give people the impression that just because the economy is improving, public spending will automatically see the benefit."

Minister Hamilton made the comments as he addressed the Chartered Accountants Ulster Society at their annual dinner yesterday evening ahead of UK Chancellor George Osborne’s Budget Statement next week

"Even though we are now most certainly on the road to recovery, challenges remain ahead," he said.

"For me, one of the biggest challenges will be reconciling the belief that many will hold that because the economy is slowly but surely moving in the right direction with the reality that public spending won’t do the same."

The Minister said there was a need to change the way public services are delivered in Northern Ireland.

"My focus on reforming and improving public services hasn’t been driven by political ideology," he said. "It has been motivated by practical reality. It is the only answer that I see to dealing with the conundrum that virtually every government now faces – how do you meet the public’s expectations by delivering services that obtain better outcomes when you have far less money?

"Reform won’t be without its naysayers. People for their own particular, often vested, reasons, will seek to place barriers in our way. But change is not an optional extra. It must become a central element of government policy. We have begun to transform our economy. Reforming and improving public services will be every bit as challenging but no less important. Just as we are committed to building a world class economy in Northern Ireland, let’s us too dedicate ourselves to developing a truly innovative public sector."

(IT)