Ulster leaders to agree economic pact

An economic pact to help Northern Ireland’s struggling economy will be agreed at Westminster today.

Initiatives to stimulate private sector investment and job creation, boost lending to businesses and deliver capital funding for frontline projects such as hospitals, schools and roads are expected to be included in the package which will be announced at Downing Street.

Prime Minister David Cameron said the ambitious package would help strengthen the foundations for peace and send a positive message ahead of next week’s G8 summit at Lough Erne.

“In Fermanagh, we will show the world an increasingly outward-looking Northern Ireland, that is open for business and focusing on the steps it needs to take to succeed in the global race.

“This agreement is a symbol of our ambitious vision for Northern Ireland – a genuinely shared society that is fulfilling its economic potential and strengthening the foundations for peace, stability and prosperity for the future,” said Mr Cameron.

The pact includes a drive to accelerate investment in infrastructure and to promote new businesses in an effort to help the ailing construction industry. Initiatives to boost tourism will also be supported.

Decades of trouble have left Northern Ireland’s economy heavily dependent on an inflated public sector.

The region has been particularly badly hit by the property crash and also competes for big business against the Republic where the rate of corporation tax is 12.5%.

Secretary of State Theresa Villiers said she hoped the new measures would help Northern Ireland compete in the global race for jobs, investment and move towards a shared future.

“Northern Ireland has taken great strides forward in recent years. Building on the political stability that has been achieved, the Government and the Executive are committed to working together to rebalance the economy and build a genuinely shared future. The pact we have agreed today will reinforce progress on both those objectives,” she said.

Last month the First and Deputy First Ministers outlined a range of plans to tackle sectarianism and division, including the removal of all peace walls within 10 years; the establishment of cross-community summer schools/camps for young people; and the setting up of 10 shared education campuses.

Additional funds for projects that aim to break down sectarian barriers between unionist and nationalists and to regenerate communities are also expected.

However, Peter Robinson and Martin McGuinness, who are due to travel to Wesminster today, have warned that the financial package must not be seen as compensation for the failure to devolve corporation tax powers.

“We are not giving up on the issue. We believe it is important for Northern Ireland – it gives us an opportunity to compete fairly on this island with a country that has a corporation tax level of 12.5%,” said Mr Robinson.

Sinn Fein’s Martin McGuinness said the Government must honour previous peace dividend commitments made by previous administrations.

“In terms of the debate around rebalancing our economy, there was a consensus between ourselves and the British Government and the best way to do that was through ensuring corporation tax powers will be devolved.

“We want to keep the British Government to their commitment and I hope that the package will reflect a commitment to that issue,” he said.