Chancellor announces NI funding package

Following yesterday's meeting between the Chancellor of the Exchequer, Gordon Brown, Northern Ireland Secretary of State, Peter Hain and leading members of the Northern Ireland political parties to discuss the future economic progress of Northern Ireland, the Chancellor set out a funding package for the Northern Ireland Executive (NIE) worth £50 billion over the next ten years that could follow a final agreement.

As part of the package, and in advance of the conclusion of the Comprehensive Spending Review, the Government would commit to at least £35 billion of funding for the Northern Ireland Executive over the next four years.

This would provide the Executive with certainty to plan public service delivery.

To meet the long-term challenges faced by Northern Ireland, the Government would further support an updated £18 billion capital investment strategy to 2017.

However, party leaders were disappointed that the Chancellor did not offer a concession on Corporation Tax for local companies, as they had requested as one of heir key priorities.

Speaking after the Chancellor's announcement, the Democratic Unionist Party said that the package as it stood was “unacceptable” and that a devolved administration was conditional upon a better deal.

Deputy leader Peter Robinson said: "It is necessary to get this package to a state where it is acceptable."

Meanwhile Sinn Fein leader Gerry Adams said that the parties knew that the issue was not going to be sorted out on Wednesday and added that the Chancellor's offer has to be looked at positively.

Mr Adams added that the Chancellor had indicated that he was prepared to talk further on the issue of corporation tax.

Ulster Unionist leader Sir Reg Empey added that they were "disappointed" by the response on corporation tax, however added that the meeting was just the beginning of a process.

However, Northern Ireland Secretary Peter Hain, said that the package on offer represents an "extraordinary settlement".

The cash offer is linked to the return of an all-party power-sharing assembly, which the British and Irish governments hope will be agreed upon by November 24.

(EF)