LOOMING PUBLIC expenditure cuts could mire the North’s economy in a prolonged recession, presenting the Stormont Executive with its gravest challenge, First Minister Peter Robinson has warned.
Referring to cuts announcements due next month from the British government, Mr Robinson said Northern Ireland could face cuts of 20 to 25 per cent or about £2 billion (€2.4 billion).
Such a sharp drop in public expenditure in a region so heavily dependent on government spending “will have a devastating impact and likely bog Northern Ireland down in recession for a prolonged period”, he said.
No Stormont department would be immune from the effects of such a cut, he said, and his ministerial colleagues should aim collectively to minimise job losses.
“In these difficult economic conditions the Executive’s main priority must be to keep people in work and put people back to work,” he said.
“If necessary, budgets should be skewed to maximise the effect of public expenditure in keeping the economy moving forward.”
Warning members of Stormont’s five-party powersharing Executive against solo runs and “cynical opportunism”, he added: “The public will not quickly forgive ministers who put the interests of their parties or departments before the interests of Northern Ireland as a whole.
“Rather than simply salami-slicing budgets, the Executive must agree a strategic approach to the challenges that we are faced with. This will undoubtedly mean difficult and painful decisions.”
Narrow party political considerations would compromise the collective approach which was needed, he said.
“Devolution means local people taking decisions which are in the best interests of those who elected us. The Executive has demonstrated it can unite to oppose the threat from dissident republican terrorism; now it must unite to see Northern Ireland through the present economic challenges.” The cuts imposed by the British government would mean “very difficult and unpopular decisions”, but he added that the Executive was equal to the task.
“Many people will rightly judge the Executive and Assembly on this basis.”
However, SDLP leader Margaret Ritchie said the electorate would need “much better leadership than we have had to date from the dysfunctional Executive in the tight grip of the DUP and Sinn Féin”.
She accused the “DUP/Sinn Féin axis” of blocking her party’s proposals for tackling the recession and boosting employment, especially in construction.
Ulster Unionist leader Sir Reg Empey said the First Minister appeared to have forgotten that the economic plight was a legacy of the British Labour party and that it fell to the new government to tackle it. However, he added: “Where I do agree with First Minister Robinson is in his call for all Executive Ministers to work collectively to address the challenge of clearing up the economic mess left by Labour.”