Brown to reveal details of Ulster's devolution package to leaders today

Budget 2007

Chancellor of the Exchequer Gordon Brown leaves 11 Downing Street with his traditional red briefcase, ahead of presenting his budget in Parliament in London, Wednesday March 21, 2007.

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Thursday, March 22, 2007

By Robin Morton

Northern Ireland's business community was today waiting anxiously to see the full details of the Chancellor's proposed economic package for the province.

In his budget speech yesterday, the Chancellor said Secretary of State Peter Hain and he were due to meet Northern Ireland's political parties today.

Gordon Brown disclosed that, at today's meeting, he would unveil plans for an innovation fund which would be available for a restored Assembly and Executive.

He said the fund would boost industry and jobs but did not give any more information to the House of Commons.

Institute of Directors Northern Ireland chairman Frank Bryan said local business leaders were waiting with some trepidation for details of Mr Brown's announcement about an economic package that would accompany devolution.

Speaking yesterday, he said: "A Northern Ireland innovation fund does not appear to promise the radical range of measures we believe are needed to promote the regeneration of Northern Ireland's private sector, including a fiscal regime that would spur investment and create the 140,000 jobs we need over the next decade."

Nigel Smyth, director of CBI Northern Ireland, said an innovation fund would be welcome, but warned that it would not on its own be sufficient to kick-start the local economy.

The Business Alliance, which represents the main business organisations in the province, included a call for an innovation fund in its pre-talks wish list statement last week.

The alliance, which represents the CBI, the Institute of Directors, the Chamber of Commerce and the Centre for Competitiveness, has called for a £5.3bn economic package.

It suggested that around £20m a year would need to be set aside for five years for an innovation fund, amounting to a total commitment of £100m.

The Business Alliance suggested an innovation fund could be used to enhance the "technological and innovative capabilities" of companies and universities in Northern Ireland.