Brown 'should come up with bigger peace dividend'

Concerns are mounting in Belfast that Gordon Brown still has to grasp the need for a substantial peace dividend to bolster any new power sharing government in the North, Sinn Féin claimed today.

As Democratic Unionist leader the Rev Ian Paisley prepared to meet British Prime Minister Tony Blair in the House of Commons ahead of tomorrow’s talks between the North's parties and the British chancellor, Sinn Féin’s Mitchel McLaughlin observed that the Irish Government was the only one so far to put new money on the table for an incoming Stormont Executive.

The South Antrim Assembly member, who met Taoiseach Bertie Ahern, Finance Minister Brian Cowen and Foreign Minister Dermot Ahern in Dublin last night, warned: “It is of increasing concern to Sinn Féin that the British chancellor Gordon Brown does not seem to be properly engaged on the issue of a substantial and significant peace dividend to be used by any incoming executive.

“As things currently stand, the only new money on the table for a future executive is that being provided by the Irish Government. The British government have yet to come up with the necessary financial package to tackle the legacy of infrastructural under-investment in areas like water.

“This reality poses a very significant challenge to the successful transition to a power-sharing executive which can effectively deal with the very many difficulties which we face.

“Sinn Féin remain engaged with the British government and the British treasury on this issue and we will express these very real concerns to Gordon Brown when we meet on Thursday.”

Northern Ireland’s politicians are facing a deadline of next Monday to form a new power-sharing government featuring the DUP, Sinn Féin, the Ulster Unionists and the SDLP.

An economic package – made up of funds from the Treasury, the Irish Government and possibly the European Union – is seen as vital if the executive is to have any chance of addressing key socio-economic challenges during devolution.

Last November Mr Brown offered the North’s political leaders a €73bn package over 10 years.

While Northern Ireland Secretary Peter Hain hailed this as significant, the North’s business and political leaders accused the British government of repackaging old funding as something new.

Northern Ireland’s politicians want the final offer Mr Brown will make tomorrow to offer business incentives and hope it will help them stop controversial water charges which are due to be introduced there on April 1.

British government sources have cautioned politicians not to expect a significant advance on November’s offer and it is believed Mr Brown will resist demands for Northern Ireland to be given a different Corporation Tax level to the UK.

Business and political leaders wanted the British government to bring Corporation Tax down to 12.5% in line with the Republic of Ireland’s in an attempt to make the North more attractive to investors.

Mr Hain has been adamant that if there is no power-sharing administration next Monday, the Chancellor’s offer will be withdrawn for good.