NI minister allocates €230m in unspent funds

THE NORTH’S new finance minister has unveiled a £230 million package for the local economy by redistributing “unspent resources” to bolster government spending in Northern Ireland.

Sammy Wilson said he would make £210 million available in additional allocations to various departments as part of the June monitoring round.

“I believe that the best way in which the Executive can provide support to local families and businesses during the economic downturn is to deliver against the plans set out in the budget and the programme for government,” Mr Wilson said in his first major budget announcement since taking up the office of finance minister.

Historically in Northern Ireland, particularly under direct rule, there has been a significant level of underspending by some government departments.

Mr Wilson said that during 2008-09 Northern Ireland Executive departments spent £8.6 billion in current expenditure, an increase of 5.1 per cent on the previous year

“The position on capital was even more positive, with almost £1.5 billion in net capital investment being taken forward, equivalent to an increase of 32 per cent on 2007-08 or almost £1 million a day in additional investment,” Mr Wilson added.

The June monitoring round traditionally allows for various government departments to appeal for unspent resources. The majority of the extra funds from the latest round of reallocation of money – £170 million – will be used to cover the cost of deferring the introduction of water charges for a further year in the North.

Mr Wilson has also earmarked £20 million to the Department of Social Development to help ease the pressure on Northern Ireland’s social housing provision.

The social development minister, Margaret Ritchie, welcomed the additional allocation but she also warned that it would address only what she described as “part of what is a £100million shortfall in the housing budget”.

Mrs Ritchie added: “The £20 million for housing is a boost both for tenants and for the local construction sector. As well as ensuring that tenants receive much needed maintenance to their homes, local maintenance contractors will be able to sustain around 800 jobs in the construction sector.”

The finance minister’s decision to allocate extra resources to social housing while ignoring a request from the North’s health minister for an additional £55 million to fight swine flu has caused a furious political row.

Minister Michael McGimpsey said he was deeply disappointed by Sammy Wilson’s refusal to allocate additional resources to the health service as it gears up to deal with the pandemic flu. There are a total of 45 confirmed cases of swine flu in the North.