Call for peace dividend for new executive

The British government faced more demands today to pump funds into a devolved executive’s budget in Northern Ireland to cement any peace process deal.

As Sinn Féin negotiators travelled to London for another meeting with British government officials on proposals to resurrect power-sharing, party vice president Pat Doherty and cross-community Alliance Party Assembly member Seamus Close both backed the idea of a peace dividend if a deal is struck.

Mr Doherty argued that, if a power-sharing executive was to have a meaningful impact on people’s everyday lives in Northern Ireland, devolved ministers would need the resources to tackle 30 years of neglect of their infrastructure.

“The British government have neglected our infrastructure for over 30 years. There is a legacy of under-investment across every part of our infrastructure - our roads, schools, hospitals, railways and sewerage,” the West Tyrone MP said.

“There is also a damning legacy of discrimination, inequality and disadvantage that must be tackled.

“The solution is not for the British government to put a greater tax burden on people here through the water charges and increases in rates but for the British government to accept that it has a responsibility to compensate for this under-investment and to underpin work of any new executive.

“There needs to be a genuine peace dividend to support the work of any new executive and its ability to deliver on the ground.”

Ian Paisley’s Democratic Unionists have pressed in negotiations for a financial package to accompany any deal to revive devolution.

Britain's Chancellor of the Exchequer Gordon Brown would have to approve any peace dividend.

But it is believed the DUP and Sinn Féin would like the British government to commit £1bn to help offset problems with the North’s roads, transport, schools and water and sewerage services.

Sinn Féin has said that it wants British government money, currently poured into heavily fortified police and Army stations and operations in the North, to be redirected into the Stormont Executive’s budget.

Alliance finance spokesman Mr Close called for proper financial support from the British government for devolved government.

The Lagan Valley Assembly member said: “The last thing a restored Assembly needs if it is to survive in the long term is for ministers to be closing schools and hospitals because of a lack of funding.

“When MLAs take decisions in a restored executive, they will want to build goodwill for the benefit of democracy and devolution.

“The inevitable outcome of the government passing the low-budget buck on to MLAs is that there will be no public confidence in the institutions if they are forced to close essential services.

“This deal will need finance to survive, and we currently do not have the money to do the job right.

“Give MLAs the tools, and they will do the job. Take that away, and expect another crisis next year.

“This deal will be doomed from day one if it is not financed properly and fairly.”

As his party leader met Taoiseach Bertie Ahern in Dublin about the plans to revive devolution, nationalist SDLP Assembly member John Dallat said parties must be careful of dirty tricks by the British treasury over a peace dividend.

The East Derry MLA, who is his party’s finance spokesperson, said: “The SDLP wants to see a peace dividend. That is why we negotiated the reinvestment and reform initiative and we welcome moves to build on its success.

“However, once-off funding is not enough. The real prize is to ensure that the funding formula for the North is changed, so that the North gets its fair share, taking into account our much higher levels of need and poor infrastructure.

“We also need to reshape our tax policy to help businesses under pressure and to encourage them to invest in research and development.

“We want to put a stop to water charges. We want proper funding restored for education, community projects, the elderly and the marginalised.

“It’s important that the figure of £1bn (€1.4bn) is real and not imaginary. It must recognise the needs of all the people affected by the past and not simply a cynical exercise in sly politics.

“Given that the British are planning on cutting the budget overall for the north, the real peace dividend may be much smaller. The treasury cannot be allowed to get away with such tricks.”