21/05/2010

NI Cuts 'Can Be Delayed', Says PM

The new PM David Cameron has confirmed that the NI Assembly can make its own mind up about when to implement impending financial cutbacks.

Although he made clear that NI would have to shoulder its share of UK-wide cuts and said, "the longer the debt was left, the worse the problem becomes" it is now clear the cuts could be deferred for a year.

NI First Minister Peter Robinson welcomed the suggestion that Northern Ireland could defer its share of the initial £6bn cuts, and also said he was grateful that Mr Cameron had pledged his support for the Executive - underlining that terrorism "would not derail the political process".

"If they want to delay action to the next year that is a matter for them, that is part of the respect agenda we believe in," Mr Cameron confirmed.

He was speaking during a visit to Stormont, in between unveiling a new programme for government with the Liberal Democrats in London and then jetting to France to visit President Sarkozy afterwards.

Meanwhile, the NI Finance Minister has said that the introduction of water charges is unlikely before April 2012.

Sammy Wilson said that he doubted that there was enough legislative time to bring in water bills at the start of the next financial year.

He was responding to questions about how the Executive could mitigate the impact of proposed spending cuts.

On Friday, Mr Wilson explained that the three options before the Executive were to implement all the cuts in the current financial year, to defer some, or to postpone all.

He said that the new Chancellor George Osborne, who is due to give details on the extent of cuts next week, might expect savings in Northern Ireland of between £120m and £150m.

Mr Wilson said that he was reluctant to commit to any of the three options, until it was clear how much money was returned to the Department of Finance from unspent departmental budgets.

Mr Wilson also explained that he doubted whether there was enough legislative time to introduce water charges in time for April next year.

The introduction of water bills has been repeatedly deferred since the Executive was re-established three years ago.

Mr Wilson said that he would prefer his revenue to come from elsewhere.

(BMcC/GK)

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