The government has announced what it claims is the largest-ever spend on infrastructure in Northern Ireland, amounting to almost £2 billion over the next five years.

The budget also confirmed the government's intention for taxpayers to shoulder an increased burden in the form of water charges, and signalled a greater preponderance for links between the private and public sector through Public Private Partnerships (PPPs).

Announcing the revised Budget at Belfast’s Odyssey Centre today – the site of the launch of Executive’s Reinvestment and Reform Initiative (RRI) last May – Finance Minister Ian Pearson said this was the "largest step so far in eroding Northern Ireland’s £6 billion infrastructure deficit".

It heralds, he added, a programme of steady improvement to people’s lives and moves ahead on the expenditure priorities originally decided by the Executive.

The new programme will be developed and delivered with the advice of the new Strategic Investment Board (SIB). The increased level of investment is projected to continue in the years beyond 2005-06 as the initial group of new projects are completed and new ones begin. It comprises:

• £725 million of potential PPP programmes over the period to 2007-08
• £400 million of borrowing in 2004-05 and 2005-06 on the basis agreed in the RRI
• £158 million of expenditure from within the Departmental Expenditure Limits in 2003-04 to 2005-06, mainly from the Infrastructure Executive Programme Fund
• £635 million of expenditure in 2006-07 and 2007-08, on the firm basis that the approach taken in the Reinvestment and Reform Initiative will continue to develop.

The provisions announced today are, said Mr Pearson, over and above the normal capital budgets for departments and is on top of the first round of RRI allocations announced by the First Minister and Deputy First Minister on July 2.

Mr Pearson said: "What I and my colleagues have tried to do is to take forward this work and build on the real progress that has been made and to maintain and indeed increase the momentum."

Mr Pearson emphasised that Northern Ireland is in a much better economic state than a decade ago. He said that employment is at a record high, while unemployment is at a 25-year low.

The local economy is forecast to grow at a faster rate than the UK average this year and next, while manufacturing is also showing signs of a recovery. But, he cautioned, there is considerable work still to be done.

(GMcG)