The Democratic Unionist Party (DUP) said yesterday that it would not be prepared to form a devolved executive if the British exchequer fails to deliver a substantial new economic package for Northern Ireland.
DUP enterprise spokesman George Dawson told business representatives in Belfast that such a package was essential, and without it a devolved executive would be "set up for failure".
A reduction in corporation tax to 12.5 per cent in line with the Republic had to be part of any deal, he added.
Mr Dawson was speaking at an event organised by the Federation for Small Business in Northern Ireland. Economic spokesmen from the North's five political parties attended.
According to Mr Dawson, negotiations on a new package will begin after the Assembly elections on March 7th and before the deadline for the new Assembly to be formed on March 26th.
"It's not in the interests of any politician to go into the executive knowing that in three, four or five years you're going to get blamed for everything," he said.
Mr Dawson's insistence that economic issues would be a deal-breaker was not endorsed by the other parties, although all agreed that it would be extremely difficult to operate in its absence.
Sinn Féin's economic spokesman, Mitchel McLaughlin, said that there was evidence that Northern Ireland was on a par with some of the poorest regions in England. However, he maintained that investment in education was as important as a cut in corporation tax, which he said was "not a silver bullet".
"We need a cocktail of fiscal measures which would allow us to operate on the same level playing field as the Republic," he added.
The SDLP's Alasdair McDonnell warned that some Labour MPs were very resentful of spending in Northern Ireland, particularly those from deprived constituencies. "There is a clear tone that Northern Ireland has done very well and must get its act together," he said.
According to Ulster Unionist Party spokesman Esmond Birnie, the historical lack of investment in the North's economy means that it is unlikely to catch up with the rest of the world for between 80 to 100 years. "There needs to be some radical change," he said. "Corporation tax is the best single tool we have."
Asked what other measures his party would like, Dr Birnie said it would be silly at this stage for them to give away their bottom line.
However, he added: "If you were pushing my party, we believe it would be irresponsible to walk away from devolution, even though it is highly desirable to bed it down with an economic package."
Alliance spokesman Seán Neeson said it was important to learn from the economic development of the Republic but cautioned that cross-Border links should not become a political issue.
