THE British government yesterday announced major cuts in training, education and welfare funding in Northern Ireland. The savings will go to fund the increased cost of maintaining security operations following the breakdown of the ceasefire.
Announcing projected budget cuts for the first time since 1990-91, Sir Patrick Mayhew, Northern Ireland Secretary, said the peace dividend had "alas, been reversed", with an extra £120 million sterling allocated to cover policing and compensation payments for the period 1997-2000.
"The IRA and those responsible for the disturbances which occurred last summer bear a heavy responsibility," Sir Patrick said.
He said Northern Ireland "cannot be exempt from contributing to the government's policy of controlling public expenditure", pointing out that per capita public spending was still 30 per cent higher than in Britain.
The Royal Ulster Constabulary is to receive an additional £77 million and an extra £42 million will top up the compensation insurance fund.
Sir Patrick acknowledged that the violence which followed the RUC's climbdown last July, when it allowed Protestants to march past Roman Catholic homes in the village of Drumcree, had led to sharp cost overruns.
Ms Marjorie Mowlam, the Labour party's spokeswoman on Northern Ireland described the measures as a budget for the short term".
Unionist MPs at the House of Commons, who now hold the balance of power following the recent loss of the Conservative majority, have told ministers they will oppose any moves to give Roman Catholics effective veto rights over parades.
Nationalists in Dublin and Belfast fear London has all but given up efforts to secure a second IRA ceasefire. They suspect that under pressure from some Conservative MPs, as well as Unionist parties, ministers are looking at Northern Ireland as a purely security problem.
However, the industry budget is to be increased by 4 per cent. Sir Patrick said the government was focusing on job creation.
The total budget is cut in real terms by 1.6 per cent in 1997-98 to £8.2 billion, followed by cuts in the following two years of 1.6 per cent and 0.7 per cent.