NI faces 25-year transition – PM
Prime Minister David Cameron says it will take 25 years to rebalance the Northern Ireland economy and grow the private sector in the region.
Mr Cameron was speaking to UTV from the Conservative conference in Birmingham as his Government is set to implement the most ambitious cuts plan in more than five decades, when Chancellor Osborne unveils its Spending Review on 20 October.
First and Deputy First Ministers Peter Robinson and Martin McGuinness have argued for special treatment in the region, where 30% of workers are employed by the public sector.
“It is a special case”, Mr Cameron told UTV’s Political Editor Ken Reid.
“It’s going to take 25 years to move Northern Ireland from the position where the state is such a large part of the economy to a position where it is a more reasonable part.”
“I think everyone, I would say from every party – probably Sinn Féin included – would accept that we need a larger private sector, more commercial employers, economic growth in Northern Ireland, all of which I am committed to help securing.”
Last week, Mr Robinson and Mr McGuinness met George Osborne at the Treasury, arguing for more flexibility in the face of the forthcoming cuts.
“We have to be flexible. Northern Ireland is a special case because the state takes up such a large share of the economy”, Mr Cameron said.
“But I would say to the people of Northern Ireland that they know and we all know that we have got to have a transition so the private sector gets bigger and the commercial sector gets bigger and we get proper economic growth and over time the state takes a smaller share of the economy.”
‘False choice’
The Northern Ireland Executive currently gets £9.2bn from Westminster under the Barnett formula, with 20%-25% reductions in Stormont’s public expenditure now expected.
Trade unions say that up to 40,000 workers could lose their jobs in the region as a result of the cuts.
“If we put off these decisions, if we decide to do nothing, if we take Labour’s advice and do it all later the interest bill mounts up and the debt gets worst and the cuts would have to be worst”, Mr Cameron said.
“It would be a false choice for Northern Ireland included if we were to put off these difficult decisions; like your credit card bill the longer you leave it the worst it gets; the deeper the cuts would have to be.”
At the weekend, Secretary of State Owen Paterson hinted that financial pledges made by the Labour Government under the terms of the St Andrews Agreement may not be kept.
Among the commitment made in 2006 is a ten-year £18bn budget support.
“We are honoring the budgetary support for Northern Ireland. If you take specifically for instance the issue of security and policing, I agreed from Opposition with Gordon Brown a very generous package to make sure we supported the devolution of policing and justice matters”, Mr Cameron told UTV.
“People in Northern Ireland should know that I believe in the UK and I want to keep the UK together. I will support Northern Ireland and have talented ministers there and I will always listen to the representation of the parties there. I want to make sure the Northern Ireland economy is a success.”
Both Mr Robinson and Mr McGuinness have criticised Mr Paterson’s comments.
“People will be concerned by the statement from the Secretary of State for Northern Ireland. Apparently he believes that International Agreements and binding commitments with Devolved Institutions have no standing if governments change or economic circumstances alter”, Mr Robinson said.
“Both the British and Irish Governments are co-guarantors of these agreements. The Irish Government are honouring their commitments, it’s time the British government did likewise”, Mr McGuinness said.
The deputy first minister will attend a panel discussion at the Tory Conference in Birmingham on Tuesday.
“Our position remains that we must grow our economy, protect those most vulnerable in our society and ensure that we work to meet the requirements of those in most objective need,” Mr McGuinness says.
Mr Robinson and Mr McGuinness are also expected to meet the Prime Minister in the coming weeks.
