Brown's £50bn a good deal: Hain

The British government will not get drawn into a Dutch auction on the multibillion-pound package offered to a future devolved government in the North, Peter Hain warned today.

The Northern Ireland Secretary insisted Chancellor Gordon Brown’s offer of £50bn (€75bn) over 10 years to a new Stormont Executive represented a good deal for the North’s politicians if they were prepared to revive power sharing.

He warned it was a once in a lifetime offer which would be withdrawn if there was no devolved government next March.

“This is an extraordinary boost for a future power-sharing administration,” he said.

“As someone who is also Secretary of State for Wales, I can tell you people there would be green and orange with envy when they look at what is being offered to Northern Ireland. People in Scotland would tell you the same.

“This is not being offered to any other part of the UK. However, it is dependent on there being a power-sharing executive in place by March 26. The Chancellor was clear last night the offer will be withdrawn if devolution is not restored.

“We were also clear that we are not going to get involved in a ratcheting-up exercise on the package. There will be no Dutch auction on the figures. Certainly, the negotiations ahead will clarify and refine some of the detail.

“The Chancellor was clear the package he set out was the minimum an executive could receive. There will be a further lift-up once the comprehensive spending review negotiations are completed in Whitehall.”

Unionists and nationalists have been arguing for two years that there needs to be a peace dividend from London and Dublin for a new Stormont Executive to spend on roads, the rail network, telecommunications, education and health if it is to have any success in attracting inward investors.

Minister for Finance Brian Cowen is believed to be including plans to spend some of his Budget on projects in the North in the next National Development Plan.

Following a meeting yesterday with Democratic Unionist, Sinn Féin, Ulster Unionist, SDLP and cross-community Alliance Party leaders, Mr Brown said his package would help a new Stormont Executive to address spending priorities.

The Chancellor’s package included at least £35bn (€52.3) for the executive over the next four years – up from £32bn (€48bn) at present – and support for an £18bn (€27bn) capital investment strategy until 2017.

Mr Brown also pledged support for science and innovation and vowed to simplify the research and development tax credit rules.

He said the Northern Ireland executive would be allowed to retain receipts totalling more than £1bn (€1.5bn) from the sale of public sector assets; efficiency savings worth £800m (€1.2bn); and EU receipts for regeneration worth about £500m (€748m).