Northern politicians promised extra £1bn in funding
Politicians in the North are to be given extra funds by Dublin and London if they are to revive devolved government, British Chancellor Gordon Brown revealed today.
After meeting the North’s political leaders, Mr Brown said that in addition to the £35bn (€51.6bn) pledged to a new Executive over the next four years, devolved ministers would be able to access £1bn (€1.47bn) to enable them to do a number of things to improve infrastructure and job prospects in the North.
Mr Brown also revealed that the British Government had signed a retail consortium agreement with major companies to provide possibly 5,000 jobs during the next few years.
He also confirmed that David Varney, the former head of the British Inland Revenue, had been asked to carry out a review of the different tax rates between the North and the Republic.
"This is an historic opportunity to move forward," said Brown.
"I believe the Northern Ireland political parties are all serious about what can be done to achieve that.
"I believe that today by making possible the resumption of the Executive through having the resources that they need, the potential for creating the jobs that they can and helping look at some of the challenges they face, we can move this process forward.
"(Northern Secretary) Peter Hain and I had a very successful and constructive meeting and we are very grateful to all the parties for what they did."
Democratic Unionist leader Ian Paisley, and his deputy leader, Peter Robinson, described the Chancellor's offer as modest progress.
However they insisted there were still some negotiations to be completed before a decision could be made on whether the DUP shared power with Sinn Féin.
Mr Robinson said the door had been left open to the possibility of a further reduction in Corporation Tax following Mr Brown's decision to set up a review which would report back in the autumn.
The DUP deputy leader also claimed that the link between the North’s local taxation and money borrowed from the Treasury had also been broken.
"But the programme of work for an executive is immense, particularly in terms of the infrastructural deficit that has to be dealt with," the East Belfast MP said.
"I further suspect that there will be more visits to No 11 before we have a package that everybody will be reasonably content with."
DUP leader Ian Paisley added: "There is no point in having the beautiful train and no fuel.
"It has got to be properly fuelled. To have successful government, to get jobs for people, to get us to a position where we can claim by right 'Come to Northern Ireland, we can give you the best possible deal, nobody can out - deal us' - that must be where we stand."
Sinn Féin negotiator Mitchel McLaughlin welcomed the progress but said the parties "remained still some distance away" from what they agreed was required.
"He (Mr Brown) did indicate some additional money and more importantly he has agreed that this will be an ongoing engagement," said McLaughlin.
But he questioned how much of the £1bn (€1.47bn) was in fact new money.
"It would be surprising, given the track record, if there is £1bn of new money," he told reporters.
"The fact that all the parties were singing from the same hymn sheet did make an impression on Mr Brown."
Sinn Féin leader Gerry Adams went directly from the talks next door into 10 Downing Street.
Of the extra £1 bn available to power-sharing ministers, £400m (589.5m) will come from the Irish Government.
Earlier this year, Finance Minister Brian Cowen, revealed plans to spend millions of pounds on projects in the North which could benefit communities and businesses on both sides of the border.
There have also been suggestions that European Union funding could be made available to help the new devolved Executive address key infrastructural challenges.
Ulster Unionist leader Reg Empey said the talks had produced "some modest improvement. This is a process that may continue for quite some time; it is evolving".
SDLP leader Mark Durkan emerged from the talks welcoming the "modest improvements" offered by the Chancellor. He insisted that only £400m (€589.5m) of the extra money on offer was new.
The North's politicians are facing a deadline of next Monday to set up a new power-sharing Executive.
If they fail to appoint a team of devolved ministers, the economic package offered by Mr Brown to bolster devolution will be withdrawn and the Assembly will be closed down.
