02 November 2007
Northern Ireland's first Budget since the restoration of devolution has seen a big increase in economic development spending at the expense of social housing.
Finance Minister Peter Robinson also promised a major reform of the public sector, with job cuts and 5% reductions in public administration spending.
According to Robinson: 'The days of direct rule budgets with Labour Party priorities are over. This Budget comes with the proud stamp: “Made in Northern Ireland”.'
The biggest winner in the £8.3bn spending plans for next year was the Department of Enterprise, Trade and Investment, which will receive a 7.3% increase. It has been given the objectives of raising the employment rate from 70% to 75%, improving industrial productivity and increasing the number of tourists by a quarter.
But Social Development Minister Margaret Ritchie complained that the increase was at the cost of her department. It will have a 1.6% cash rise for 2008/09 and will be unable to finance as many affordable homes as required.
Education is to receive a 3% budget increase, enabling 100 school building projects, using public-private partnerships, to go ahead. Health has a 3.5% rise, worth £134m next year.
The Department for Regional Development is allocated the largest capital budget for next year, £569m, to pay for improvements to roads and public transport, with the prospect of a rapid transit scheme for Belfast.
Robinson pointed out that the regional rate – charged on households alongside a district rate for councils – has risen by 62% in five years. He promised that this would now be frozen at its current level for three years, while new charges for water are phased in.
Public bodies must now deliver £790m in cash savings. This includes the ending of some existing programmes, plus 5% gains in efficiencies.
Robinson said: 'I am simply not prepared to stand back and leave unchallenged the countless instances… where taxpayers' money is being wasted on over-staffing, absenteeism, poor working practices and a resistance to radical change in the way we go about delivering services.'
The comments were condemned by the main public service union Nipsa. General secretary John Corey said: 'You cannot provide excellent public services and cut public service staff at the same time… We are deeply concerned this could result in thousands of jobs being cut.'
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