Wilson queries North health spending

Northern Ireland's finance minister Sammy Wilson has said it is time to question current levels of spending on health and social housing.

Addressing a conference in Dundalk this afternoon Mr Wilson said he believed infrastructure investment and economic growth were intrinsically linked, and he said North South cooperation "can deliver real advantages for both jurisdictions".

But the DUP minister said in a "tighter economic situation" and in developing a new programme for government, the Executive "will need to take some difficult decisions about economic policy - which may mean moving resources from other less important areas. Rest assured however, that I personally will do all I can to ensure that the economy remains firmly as the number one priority in Northern Ireland."

Mr Wilson said 50 percent of the Budget in the North was currently being spent on health "and it would be 80 percent if the Health Minister had his way". He said there were "soft" issues on which all politicians would be lobbied for funding, including social housing.

But he asked if it was better to plan for a person's physical and mental health and well being through long term economic investment, "or to simply keep building hospitals". Mr Wilson asked was it right to simply keep on building social housing for people who can not afford a home, or build an economy so people can build a home"

Maintaining "Government has a responsibility to invest public money in the right areas to deliver a modern and prosperous economy in the future, Mr Wilson said "this is how we can maximise returns from tax-payers investment". He said the question was about whether the North wanted to build a long term economy or remain dependent on subsidies.

"If I ask myself what we have achieved as an Executive in terms of policies to promote economic growth, I can point to a number of short-term demand-side focused initiatives.

"We have frozen domestic rates; we have delayed water charges; and we have introduced fuel subsidies for poor households. These measures have served as an immediate stimulus during a difficult time and demonstrated the Executive's ability to act swiftly in response to the economic downturn. I would argue, however, that we have not done enough to advance long-term economic growth. We need to ensure that we do not lose sight of the importance of improving the supply-side of our economy."

The Minister praised Minister for Finance Brian Lenihan for the level of consultation on the creation of Nama, and while the said Nama would clearly have direct implications for the north's banking sector, he believed its effects would be felt on the wider economy on both sides of the Border. "Nama concerns are an issue the two governments need to address together", he said.

Mr Wilson said it was imperative that the North invest in a manner that generates enduring and tangible economic returns - including such areas as research and development and innovation; maths and technology skills; physical infrastructure and lessening regulatory burdens.

He told attendees at the All Island Infrastructure Investment Conference in the Fairways Conference Centre, Dundalk, that he believed the Executive had not done enough to advance long-term economic growth in Northern Ireland.