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£2bn cuts 'devastating' for NI

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First Minister Peter Robinson has warned that the £2bn cuts to public spending in Northern Ireland will have a "devastating impact" on the region's economic recovery.
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The DUP leader says dealing with the Conservative- Liberal coalition driven cuts will be the Executive's "biggest policy challenge to date" with difficult and painful decisions ahead.

He warned all parties not to play politics with the forthcoming cuts.

"The Executive has demonstrated it can unite to oppose the threat from dissident republican terrorism; now it must unite to see Northern Ireland through the present economic challenges", Mr Robinson said.

The prospect of Stormont public expenditure being cut by 20%-25% will have a devastating impact on the recovery, he added.

"Last June I warned that cuts in public expenditure were unavoidable but that supporting the Tory/UUP proposals for severe cuts (£80bn over 5 years) rather than a more gradual approach would endanger economic recovery in Northern Ireland".

Mr Robinson says the Treasury has identified capital expenditure as the main target for reductions.

"With an already depressed construction industry the prospect of public sector construction drying up would ring alarm bells throughout the sector."

"In these difficult economic conditions the Executive's main priority must be to keep people in work and put people back to work."

Mr Robinson says DUP ministers have been told to set aside departmental interests to face the tough economic challenges ahead.

"The public will not quickly forgive Ministers who put the interests of their parties or Departments before the interests of Northern Ireland as a whole", he warned.

"With an Assembly election only months away it may be tempting for some to play politics with the difficult decisions that need to be faced in the weeks ahead, but I believe that such cynical opportunism would be transparent to the wider public.

"Given the scale of the Coalition's cuts, very difficult and unpopular decisions are inevitable but I believe that the Executive is capable of responding to the challenge. Many people will rightly judge the Executive and Assembly on this basis."

The Northern Ireland Independent Retail Trade Association said front line public services should be protected as far as possible.

"We also need to ensure that new spending priorities are economy proofed and can provide the widest possible support to a sustainable recovery in our private sector", NIIRTA Chief Executive Glyn Roberts commented.

"It is not Government that will take us out of recession, it is business and in particular a strong and vibrant small business sector which will lead the way towards recovery".

© UTV News

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At 09:05 on 12 September 2010, MIKE wrote:
Totaly agree Norman . If people have less money to spend less money going back into the Retail arena ie clothes food no one wil buy or be able to afford luxury items like cars furniture etc so less money going into retail shops wont be able to sustain massive rental and tax liabilities so close down so they become unemployed and so the circle gos until we have left a state full of unemployed people ! Anarchy takes over we have masssive riots etc. So where do we go thos e at the top need cuts before the grass roots workers and paying for a popes visit im sure teh tax payers are to impressed about that why should we the tax payer foot the bill for that .alot of people would rathher the money go to Helath and Education not some guy who s hiding massive wrong doings in his church !
At 15:20 on 07 September 2010, Norman wrote:
Yes, this is the price we pay when we closed so many factories, which paid our way in the world, to replace them "modern luxury developments" and "villas." Clever economic thinking. Meanwhile, in Germany .......
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