Northern Ireland’s Assembly was today hit with a cut of nearly £400 million from its spending plans, with Finance Minister Sammy Wilson warning that further cutbacks could not be ruled out.
Mr Wilson told the Assembly his blueprint for the coming two years was a prudent step to avoid problems in the future as the Executive faced the cost of a range of issues including the deferral of water charges.
But as individual ministers now face the task of deciding where they will make their reductions, Mr Wilson conceded to critics that there was a risk frontline services could be hit, but he hoped this would be minimised.
Plans to ensure that each department faced an equal cut were dropped to help protect vital services, but the Department of Health nevertheless faces the largest cash loss of £113.5 million.
Mr Wilson told the Assembly his review of 2010-11 spending plans would put the Stormont finances on a secure footing with the Executive also facing the cost of the equal pay settlement with the civil service.
“The easy option here would have been to do nothing on this issue which would have reduced the level of intervention required at this time,” he said.
“However, this short-sighted approach would have shifted the burden to the 2010-11 financial year when the Executive would then have struggled to address emerging pressures.
“In the circumstances I was faced with, I am confident that the proposals I am publishing today represent the best way forward in the next financial year.”
Each department faces a multi-million pound cut in their spending plans and in their capital investment plans for projects such as new buildings and roads.
Departments are also contributing to the creation of a £26 million ‘Investment to Save Fund’, which it is hoped will be used to invest in projects that could provide long-term savings. The Civil Service equal pay claim will cost £160 million, though central government is footing part of the bill.
The SDLP’s Declan O’Loan queried the spending plans and Sinn Féin said the committees scrutinising departments would have to ensure cuts proposals were carefully considered. Ulster Unionist David McNarry asked if further cuts could be in the pipeline.
PA