No limit other than the ability to repay will apply to the money on offer to Stormont for investment in infrastructure and public services, writes Dan Keenan.
The Executive's primary sources of revenue are domestic and business rates. All private homes in the North pay an average £400 per year to the 26 local councils. The Northern average is well below that charged in Britain. Although local government in England and Wales is structured differently, the average bill is as high as £950 per home per year.
The North's ratepayers now face steep increases if the massive funds needed for investment are to be raised. Even though the loans will be "gilt-edged" from the Treasury in London and offered at low rates of interest, local taxation in the North is due to rise dramatically in the next two to three years.
Key political sources at Stormont told The Irish Times last night that for every £72 million extra raised by the Executive in rates, there was a possibility of borrowing £1 billion for investment. If rates were to rise to the British average within the timespan of the next spending round (2003-2006) then there is a theoretical possibility of an initial £5 billion being made available.
This will be applied to key areas where infrastructure is seriously deficient. These areas include transport - roads, rail and public transport - and water and sewerage. Health will also demand substantial additional resources and the Minister, Ms Bairbre de Brún, is to make a key investment announcement soon.