Britain urged to pump £1bn peace dividend into North

THE British Government is facing demands to pump funds into the North in a bid to bolster a talks deal if it is struck, Sinn Féin leader Gerry Adams said last night.

As Sinn Féin and the Democratic Unionists considered proposals put to them by British and Irish governments for reviving power sharing, Mr Adams said Whitehall was being urged to help cement any deal by providing a peace dividend.

He said: “We actually were the party - and we welcome the DUP coming on board - who originally called for a peace dividend.

“We certainly believe that the money that goes into the British war machine should be diverted into an economic dividend, particularly for disadvantaged areas.

“I have some hope - because we talked to Tony Blair about this the last time we met, and we will be talking to (Northern Ireland Secretary) Paul Murphy also about the detail of all of this - I have some hope that there will be a peace dividend.

“How much will it be? I don’t know, but I have some hope that we may get it.”

The DUP’s Ian Paisley has pressed in negotiations with the two governments for a financial package to accompany any deal to revive evolution.

Britain’s chancellor of the exchequer Gordon Brown would have to approve the peace dividend, but it is believed the DUP and Sinn Féin would like the Government to commit £1 billion to help offset the problems in Northern Ireland infrastructure.

The DUP believes the province has seen its water sewerage system fall into disrepair, as a result of 30 years of direct rule from Westminster, and that the cash is also needed to boost transport, schools and other essential services.

The negotiations are believed to be delicately poised, with Sinn Féin and the DUP still raising some concerns about the two governments’ proposals.

If power sharing is to be restored, it will require a significant move by the IRA on disarmament.

It is believed an IRA weapons decommissioning act could be witnessed by Protestant and Catholic clergy, but the DUP would like a visual aspect to it, with either photographic or video evidence.

Both parties are also understood to have concerns about the operation of political institutions under the deal, and Sinn Féin is keen to pin down London and Dublin on a commitment to transfer policing and justice powers from Westminster to Stormont within two years.

It is also understood the DUP has some concerns about the rolling out of any deal and the time frame in which it might take place. Mr Murphy yesterday indicated that he was hopeful that the DUP and Sinn Féin, which are the only parties to have seen the proposals, could accept them.