Clarity call urged on £1bn pledge

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Business leaders in NI have urged clarity over £1bn from the government to help seal a deal on devolution.

Chancellor Gordon Brown pledged the cash if devolution is back next Monday.

The CBI said the "true extent" of his commitment needed to be known and the NI Manufacturing Focus Group said Mr Brown was a "financial conjurer".

The Ulster Society of Chartered Accountants said cash should not be used to ease water charges or other "short term consumer benefits".

The Confederation of British Industry held its annual meeting in Belfast on Thursday evening.

Its Northern Ireland chairman, Declan Billington, said politicians should deliver on their commitments and ensure "peace and political stability are underpinned by an economy that gives hope, and creates opportunities for a better life for all".

Commenting on Mr Brown's announcement he said: "Amazingly the chancellor's headline grabbing offer of a further £1bn is taking the credit for £400m donated by the Republic to a future devolved assembly, for additional infrastructure spend.

Mr Brown announced details of a financial package

"And as for the £600m balance, is it simply a coincidence that this is the same number as our 2.3% share of the national spending plan increases, announced in the budget?"

Basil McCrea, a spokesman for the Northern Ireland Manufacturing Focus Group, which has been calling for a cap on manufacturers' rates bills, said Mr Brown was one of the "greatest financial conjurers" of modern times.

"We need absolute clarity about what is on offer," he said.

"People should be under no illusion, failure to address the crisis for manufacturing will destroy the economy.

"We must all remember that this deal is a one-off, it's our one chance to secure the financial future of Northern Ireland and we must not squander it."

Competitiveness

The chairman of the Ulster Society of Chartered Accountants, Colin Johnston, said the money secured from the chancellor should be directed towards investment which would improve the competitiveness of Northern Ireland business.

"Money should not be diverted into simply easing the impact of the water charges or other short term consumer benefits," he said.

"It is clear that water charges will be recovered eventually from the consumer and that any relief will therefore only be temporary.

"By contrast, moves to improve our competitiveness and capital infrastructure could bring a permanent benefit to the local economy."

The Northern Ireland Assembly has been suspended since October 2002, amid allegations of an IRA spy ring at Stormont.

A subsequent court case collapsed. Direct rule has been in place since that date.

The two governments have given the parties until 26 March to set up a power-sharing executive, otherwise Stormont will be dissolved.