Hain to announce review of NI public spending

The Northern Secretary will today announce a thorough review of public spending and signal a new, wider approach to North-South…

The Northern Secretary will today announce a thorough review of public spending and signal a new, wider approach to North-South arrangements.

Peter Hain is expected to refer to opportunities for enhanced economic cross-Border co-operation as well as to an audit of North-South social opportunities.

He will outline his ideas in a keynote speech to be delivered at Stormont at a conference organised by the Fabian Society.

Mr Hain could signal a new North-South strategy for investment spanning both parts of Ireland and greater linking of markets on either side of the Border.

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It is understood the speech may refer to the Republic's economic success and suggest lessons for Northern Ireland. This could include the possibility of "outsourcing" jobs across the Border.

The speech is further expected to confirm a radical reassessment of the allocation and expenditure of public funds in Northern Ireland, especially in relation to education.

The Irish Times understands that 2007 will be designated a "base year" for a review of public spending which will take two years to complete.

The review will address the funding of education in view of the falling school registers and the range of state-controlled, maintained, integrated and Irish-language schools all supported by the Department of Education.

There are 50,000 empty desks in Northern Ireland classrooms and this is expected to rise to 80,000 within the decade.

Some 130 schools are currently under construction or major upgrading.