Sunny Belfast Hi 24 °C | Lo 11°C

Budget 2010

Sammy Wilson: Northern Ireland could be left stuck in recession

Finance Minister fears Ulster could miss out on growth

By David Gordon
Wednesday, 23 June 2010

Sammy Wilson

Sammy Wilson

Stormont Finance Minister Sammy Wilson has voiced Northern Ireland recession worries during the Commons debate on George Osborne's Budget.

Mr Wilson also issued a plea for more information on spending cuts heading for Stormont.

The DUP MP and MLA warned in Parliament that Executive ministers have been “planning in a vacuum” due to the lack of detail on future funding.

The cuts facing Stormont budgets from 2011 will not be known until October.

Mr Wilson told the Commons yesterday: “We have been told that there will be a 25% cut in departmental expenditure limits over the next four years, but that it will not apply evenly and some departments and areas of Government spending will be hit more than others.

“In Northern Ireland, we have now started the budget process. Because of the neglect of the previous Government, there was no comprehensive spending review announcement for the previous year, so we are planning in a vacuum.

“It is important that information be made available quickly to regional Assemblies as to what the impact on their departmental expenditure limits is likely to be, so that effective planning can take place.”

Expressing concerns about the prospects for the province's economy, Mr Wilson said: “I am always reluctant to plead special cases, but one has to consider where Northern Ireland is in the economic cycle.

“We lag behind, as we are still in the downward part of the cycle. All the available indices, whether of output, employment, forward orders, investment or whatever else, show that we are still on the downward slide in the cycle.

“Our concern is about the impact that the attempts to restructure the economy could have, and the fact that while growth might occur in the rest of the United Kingdom, we might find ourselves still stuck in a recession because of the particular circumstances in Northern Ireland.”

Mr Wilson also stated: “We are promised a report in the autumn on how Northern Ireland's economy might be rebalanced, including an examination of proposals on economic enterprise zones, a possible mechanism for changing corporation tax rates, and other economic reform options.

“I look forward to that paper, and I am sure that the Northern Ireland Executive will do so too, but I note that that paper is merely examining options and proposals.”

Highlighting the impact of public expenditure cuts, he added: “We will look to see how quickly the impact of the reductions in public spending is offset by some of the proposals in the promised paper on rebalancing the economy.

“This is important to us, and we want to drive it forward, but it will be made more difficult by some of today's announcements.”

In Focus: Key Budget reports

Analysis

Richard Ramsey: An unambiguously negative series of announcements for Northern Ireland

Hamish McRae: The mountain we all have to climb just got steeper

Sean O'Grady: Fiscal tightening will roll back the frontiers of the state

The World's 10 Sexiest Women

The World's 10 Sexiest Women

NiteLife: The Roost, Granny's, Bert's

Had a big night out? Click here to send your pics

Columnist Comments

jane_graham

Why my kids feel Olympics are not the real thing now

I did quite well in my school exams, but the only thing for which I can confidently say I stood out like a beacon among my fellow pupils was my record-breaking 100-metres dash.
readers_editor

Think your money is legal tender? Don’t bank on it

Readers have a habit of shining spotlights on unexpected issues that throw up interesting queries. Or, on occasion, a downright can of worms.

eamon_mccann

World must open its eyes and see Israel for what it is

Why pick on Israel when there's so much injustice in the rest of the world? The answer is to be found in the specific circumstances which gave rise to the launch of the BDS (Boycott, Divestment and Sanctions) campaign in July 2005.
liam_clarke

PR machine is driving Sinn Fein power push

Sinn Fein's ard fheis opens in Killarney tomorrow. Like most conferences held by successful political parties, it is a well-managed set-piece. It is a PR event and it is aimed at the voters watching on TV.
robert_mcneill

Why bringing up our kids should be child's play... or maybe it's not

Nurse, the screens! Yup, top experts have issued new warnings about kiddies watching nothing but tellies and computers, while real life flits by unnoticed outside.

The Troubles: Northern Ireland's First Minister and Deputy First Minister

In Pictures: All Our Yesterdays

In Pictures: The Giant's Causeway

Belfast City Marathon

Belfast Telegraph Quizzes

Exams

Just Born: Readers' Baby Pictures

Just Born: Readers' Baby Pictures

To send Us Your Baby snaps just Click here

Just Wed: Readers' Wedding Pictures

Just Born: Readers' Wedding Pictures

To send Us Your Wedding snaps just Click here

Latest Comments

Belfast Telegraph Home Delivery