British government urged to put North’s finances on ‘sustainable footing’

Letter presented to British PM Rishi Sunak by Stormont Ministers setting out ‘inadequate NI funding model’

NI First Minister Michelle O’Neill and Deputy First Minister Emma Little-Pengelly signalled the importance of putting the North's finances in order. Photograph: Getty Images

Stormont is asking for a fair funding model that is “taken for granted” by other devolved governments, First Minister Michelle O’Neill told the first sitting of the restored Northern Ireland Assembly.

A motion urging the British government to put Northern Ireland’s finances on a “sustainable footing”, received unanimous backing in the chamber.

During a debate, Ms O’Neill said she and Deputy First Minister Emma Little-Pengelly felt it was important that a “very clear sign of a shared view of the importance of the matter was sent out”.

An amendment brought by the SDLP — which forms the official Opposition — calling for Ministers to produce costed plans for revitalising public services, in line with a comprehensive programme for government, was also passed.

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The first day of Assembly business came a day after Taoiseach Leo Varadkar and British prime minister Rishi Sunak travelled to Belfast for bilateral talks with parties following the restoration of the powersharing institutions at the weekend following its two-year collapse.

A letter was presented to Mr Sunak by newly elected Stormont Ministers on Monday setting out the North’s current funding model which the parties say is inadequate despite a pre-Christmas £3.3 billion (€3.8 billion) package offered by the British government to deliver Northern Ireland’s public services.

Mr Sunak described the offer as a “generous and fair settlement” — comments echoed by Northern Secretary Chris Heaton-Harris — but the letter said it would only provide a “short-term solution to the pressing issues we now face”.

More than £580 million of the UK package is earmarked for a public sector pay award following a long-running dispute that led to mass strike action last month.

“We’re not asking for special treatment. We’re asking for fairness and equality,” said Ms O’Neill. “We are asking for funding that reflects the needs of the people that we serve and we are asking for a funding model that is taken for granted in Scotland, Wales, but it’s being denied to us here. The British government had hoped that we would be bowled over by the headline figure [£3.3 billion] and rush to accept it without due diligence … that’s not how we roll.”

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Ms Little-Pengelly said in her 17 years as a special adviser at Stormont and junior minister before becoming Deputy First Minister, she had never seen the Executive collectively sign a letter on the first day.

“That sends a very strong and positive message and I hope it sends a very, very clear indication to the government that we are serious about this,” she said.

During the day’s proceedings, there was a lengthy suspension to appoint the chairmen/women of various Stormont scrutiny committees, including a new watchdog committee on the Windsor Framework Agreement.

Chaired by Sinn Féin MLA Declan Kearney with the DUP’s David Brooks as vice-chairman, the committee will consider updates to European Union law which might apply to Northern Ireland as a result of the post-Brexit trade deal and report back on their significance.

Sinn Féin’s Carál Ní Chuilín was also elected as principal deputy speaker, one of three deputy speakers who will assist Speaker Edwin Poots in chairing meetings.

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Seanín Graham

Seanín Graham

Seanín Graham is Northern Correspondent of The Irish Times