Economic package not enough, says Paisley

British Chancellor Gordon Brown needs to improve on the offer made to an incoming Northern Executive, Ian Paisley insisted last night.

As he prepared to leave for London for crucial talks with British Prime Minister Tony Blair on plans to reactivate power-sharing next Monday, the Democratic Unionist leader told a business conference in Belfast Mr Brown's economic package would not produce the change needed for a dynamic economy in the North.

He also accused Mr Brown of sleight of hand by announcing an additional £1bn (€1.5bn) for the incoming Stormont government, when in reality £400m (€590.4m) of that money came from the Irish Government.

He also urged the Federation of Small Business to support politicians in the North in their bid to secure a better package which also addressed more favourable Corporation Tax levels.

"Progress has been made in some areas," he said. "But I do not believe there is anything in the present proposals of the Chancellor which will lead to the step change in the economy that is needed and which will close the gap with the rest of the UK.

"Additional money for roads or to allow some time for reconsideration of water charges is one thing. What is really needed are measures which will allow our economy to grow in future years and be less of an economic drag on the rest of the United Kingdom."

Pressure is mounting on the Democratic Unionist Party to give the green light to a new era of power-sharing in the North.

However the party has insisted it still needs more clarity on the attitude of Sinn Féin to co-operating with the police in the North as well as a better economic package from the British Treasury.

The DUP's 120-member party executive is due to meet in Belfast in what is being billed as the most critical debate in the history of the party.

Northern Secretary Peter Hain will need a signal from Mr Paisley by midnight on Saturday that he intends to nominate ministers.

If a power-sharing government is not formed, Mr Brown's peace dividend for the new Executive will be withdrawn and the Assembly will close down, with British ministers continuing to push through controversial plans for water charges, the end of academic selection and rural planning restrictions.