Hain unveils radical NI spending review

The Northern Ireland Secretary of State has announced a radical review of the way Government money is allocated and spent in the province.

In a speech to the Fabian Society, the Secretary of State Peter Hain described the "year zero" measures in the Comprehensive Spending Review as a "root and branch" approach to funding services in Northern Ireland in 2007 to 2009.

He said that the approach would enable funds to be redirected to health and education and other front line services.

Mr Hain said: “No specific funding stream of programme is exempt because if we do not radically reassess our spending priorities and ensure we are making the best use of taxpayers’ money, then we will lose their trust to spend it on their behalf.

“We will continue to increase spending on public services in Northern Ireland each and every year, but we must be prepared to abandon established and entrenched spending programmes whose value has diminished with the passage of time. Instead, I want to see public expenditure targeted on those areas that will enable Northern Ireland to take its place as a highly competitive region with a growing and vibrant economy where public services are delivered in the most cost effective way to meet the needs of the community.”

The Secretary of State also announced that he was setting up an independent review of education spending, as well as the planning of the whole school estate and the effect of falling school rolls.

Mr Hain said the review would be similar to that recently undertaken into Northern Ireland’s health service.

He suggested that the review would also look at the consequences of falling school rolls – there are currently nearly 50,000 spare school places with a projected figure of 80,000 by 2015 – and the costs that come from segregation.

Mr Hain said: “The review will also be an opportunity to get our education debate away from segregation and on to skills, to ensure that everyone has the skills to match the jobs that our future economy needs. That means an entire reorientation of the education system around the critical age of 14 and the key life decisions young people must make at that age about their future careers, and effective delivery of both academic and vocational education for those aged 14-19.

“The segregation of schools into the numerous sectors in Northern Ireland comes at a high price. We need to see whether a new model of schooling, sharing across sectors, could help us achieve higher standards, better facilities and a better use of resources,” he said.

(SP)