Ahern welcomes new Northern funding initiative

The Taoiseach Mr Ahern has welcomed today’s announced of a multi-million reinvestment and reform initiative for Northern Ireland…

The Taoiseach Mr Ahern has welcomed today’s announced of a multi-million reinvestment and reform initiative for Northern Ireland.

Mr Ahern also congratulated the North’s First Minister, Mr David Trimble, and Deputy First Minister, Mr Mark Durkan, on the "very significant package" of measures.

"The proposed redevelopment of former security installations into dynamic locations for economic development and regeneration wil have a very positive impact on communities disadvantaged by the violence of the past," he said.

Mr Ahern’s comments followed today’s announcement by the British Chancellor Mr Gordon Brown of an investment package which could potentially inject billions of pounds into the Northern Executive budget.

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In Belfast today with Mr Brown, British Prime Minister Mr Tony Blair said the package offered the possibility of a new political beginning for the Northern Ireland.

Speaking to an audience of Assembly members and businessmen, Mr Blair also hailed the significance of British army assets and prisons being handed over to the power-sharing government.

He said that while this marked a new beginning for the Executive, there also needed to be an end to paramilitary activity to underpin the investment.

"There is no halfway house. It is a democratic commitment that over time has to become more, not less secure . . .

"The conflict must really be over, so that normality means the same in Northern Ireland as it would in any other part of the United Kingdom," Mr Blair said.

Mr Brown offered the Executive the ability to borrow the money which could be used to fund improvements investment in infrastructure including the water service, health facilities and public transport.

The money would be in the form of a loan. Mr Brown said £200 million sterling will be available immediately.

A new strategic investment body for Northern Ireland is also to be established to offer a coordinated approach to investment and public services.

Mr Brown said he was announcing an economic settlement to back up political agreement.

Mr Trimble claimed the package which will enable his power-sharing Cabinet to borrow billions in the form of low interest loans from the Treasury had "wide ramifications" for public services.

"We will all work together to deliver reform and reinvestment in public services and the executive has placed that at the centre of its programme."

Additional reporting PA