NI Executive allocates increased funds for builders

The Northern Ireland Executive is to make up to £86

The Northern Ireland Executive is to make up to £86.5 million (€103 million) available to help bring forward major infrastructure projects for the beleaguered construction industry, it was revealed tonight.

Although it has not been decided where the money will go, finance minister Nigel Dodds said he had decided to accelerate funding for investment in the local economy over the next two years.

Builders have been pressing for development contracts like a new hospital for women and children and roads improvements to be speeded up.

Mr Dodds said: "This measure provides the flexibility we need to respond to the needs of local firms currently experiencing difficulties."

The construction industry had warned thousands more faced losing their jobs by next summer because of the house-building downturn and the alleged shortage of government work.

Health minister Michael McGimpsey has expressed frustration at not being able to build a new hospital at the Royal in west Belfast sooner because of lack of money.

Mr Dodds' announcement followed today's pre-budget report by British chancellor Alastair Darling in Westminster.

"I welcome the decision to bring forward to January the increases in child benefit and the basic state pension," he said. "This will benefit over 300,000 young families in Northern Ireland and offer additional help to older people just when they need it most."

He said 132,000 firms would benefit from support for small businesses but warned National Insurance rate increases planned from 2011 would not encourage employers to retain and create jobs or lure employees into work.

"I also note that Whitehall departments are being expected to achieve a higher value for money target to release additional resources for public services. This is something that will also need to be considered by the Executive," he added.