Clegg Hints At Better Deal For North

The second most powerful politician in the Westminster Government has pledged to "look again" at the level of spending cuts proposed in Northern Ireland.

The commitment from the Liberal Democrat Leader Nick Clegg and Deputy Prime Minister came amid claims from Stormont that a major cutting the capital expenditure budget would break a deal that was struck (by Labour) during negotiations as part of the NI 'peace process'.

An £18bn, ten-year investment pledge made by the last Labour government as part of the peace negotiations.

The 2006 St Andrews Agreement, which paved the way for the DUP and Sinn Fein to share power, incorporated a joint deal between the British and Irish governments to fund infrastructure projects in the region.

Mr Clegg held talks with First Minister Peter Robinson and Deputy First Minister Martin McGuinness on how the coalition Government's spending review on October 20 would hit Northern Ireland.

"The First Minister and Deputy First Minister raised with me in very clear terms their concerns about the possible impact of the deficit reduction plan we are setting out on capital expenditure in Northern Ireland," he said outside Stormont Castle on Thursday.

"I have said that I will go away with colleagues in the coalition Government to look at this. We understand their concerns, we'll look at them but obviously I can't provided detailed assurances now because everything is still being decided upon before October 20," he said.

"It would be wholly wrong not to recognise the very special circumstances in which NI finds itself and to be particularly aware that a society ravaged by conflict needs to have a sense of hope in its own economic future to entrench peace."

His visit was just hours after the Stormont Executive joined forces with the Welsh and Scottish administrations to warn the Treasury not to cut too much from their block grants too soon.

Just Desserts

Last night, at a dinner to mark the first meeting of the North-South Parliamentary Forum at the Slieve Donard Hotel, Newcastle, Nick Clegg said: "What you have achieved is truly remarkable. And for those of us who came into politics because of its transformative power, because we do not believe you must accept the world as you find it, it is a huge inspiration."

He continued: "We will continue to work closely with all parts of the community to create the stable, peaceful, and prosperous Northern Ireland we all want to see," and noted the need for continued vigilance against threats to Northern Ireland's security.

"I want to be unequivocal: the new government will not waver in our condemnation of those who attempt to drag Northern Ireland back to its darker days and we will play our part in bringing them to justice.

"We take the question of resources very seriously and we are strongly committed to the terms of the financial agreement that accompanied the devolution of policing and justice.

"Not only have we stood by the £800m package agreed by the previous government but we have also gone further, providing over £12m from the Reserve this year," he said.

"Our position is clear: these individuals will not succeed in turning back the clock," he insisted.

On the Spending Review, he said that all of the regions and nations in the UK will need to play their part.

"But, unlike previous governments, we do understand that not all areas are the same," he continued.

"Some are more vulnerable than others. So we recognise anxieties here in Northern Ireland…and our ambition is for a private sector-led recovery, which can sustain growth over the long-term.

"Right now the Treasury is working with the Northern Ireland Executive and the Secretary of State to identify ways to help rebalance the local economy, including examining potential mechanisms for changing the corporation tax rate and looking at ways of turning Northern Ireland into an enterprise zone," he said, also referring to the serious hardship faced by members of the Presbyterian Mutual Society.

"The Ministerial working group has been restored under the Chairmanship of the Secretary of State. And we are working intensively to find a fair and just resolution." he said.

"We are determined to get the balance right, respecting Northern Ireland's political arrangements, standing up for its security, supporting its prosperity."

(BMcC/KMcA)