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David Cameron leaves NI talks without a deal but promises 'financial firepower' NI talks: McGuinness says Cameron must supply proper financial package
(about 3 hours later)
David Cameron has left talks at Stormont in Northern Ireland saying a deal was not possible but he had offered "financial firepower" for one. Progress in Northern Ireland talks is impossible "without a creditable financial package," Deputy First Minister Martin McGuinness has said.
Prime Minister David Cameron left the talks saying that while a deal was not possible at this stage, he had offered £1bn of "financial firepower" for one.
The talks focus on disputes over flags, parades, the past and welfare reform.The talks focus on disputes over flags, parades, the past and welfare reform.
The prime minister said he was providing what would amount to "almost £1bn of spending power for the coming years" if agreement could be reached. First Minister Peter Robinson said Mr Cameron would have offered more if the parties were agreed on welfare reform.
But Sinn Féin said "no credible financial package" was on the table. The DUP leader said he did not believe the parties had "sufficiently challenged the prime minister on what his bottom line is on financial issues".
This was not "new money" said deputy first minister Martin McGuinness.
'Underwhelmed'
"We were all distinctly underwhelmed by his generosity," he said.
"Unfortunately, whatever you have been told by David Cameron, there was no credible financial package on offer to executive ministers to allow us to combat the austerity agenda that this government has been inflicting on us," he told journalists outside the talks at Stormont House.
"Our job was to try and arrive at a financial package that would allow us to protect public service jobs and hospitals and keep teachers in schools - to provide the essential services our people deserve.
"Thus far we haven't got that. But we don't give up."
First Minister Peter Robinson said there was "work that needs to be completed" and a "responsibility to get the job done".
The DUP leader said he did not believe the parties had "sufficiently challenged the prime minister on what his bottom line is on financial issues", as they had not reached agreement on implementing welfare reform measures in Northern Ireland.
"I think the prime minister would have had more give in him if he had seen that the issue was going to be resolved," he said."I think the prime minister would have had more give in him if he had seen that the issue was going to be resolved," he said.
Stormont sources say the bulk of the extra £1bn of spending power referred to by Mr Cameron consisted of reassigning the Northern Ireland Executive's current borrowing power, known as the Reform and Reinvestment Initiative. Stormont has not introduced welfare reforms passed by Westminster in February 2013. Sinn Féin has led the opposition to the reforms.
That facility currently allows Stormont to borrow £200m per year for new capital build projects. Mr McGuinness, who is a Sinn Féin assembly member, said: "In the 18 hours of his involvement in this negotiation, David Cameron made little or no contribution other than to duck his responsibilities and that of his government.
It is understood the prime minister proposed that a full £200m could be diverted in the first year towards funding a voluntary exit or civil service redundancy scheme, and £100m for five successive years, adding up to around £700m in total. This is why Stormont politicians are describing the cash as their own money. "There was no credible financial package on offer which would enable the executive to protect frontline public services or to deliver the type of peace and reconciliation work needed to stabilise the peace process."
The prime minister has also offered an extra £10m per year for four years to fund a proposed new Historical Investigations Unit. The parties were presented with an 18-page paper by the British and Irish governments on Thursday night, examining issues such as finance and welfare, flags, identity and culture, parades, the past and institutional reform.
Speaking before he left Northern Ireland, Mr Cameron said: "I was prepared to put on the table real spending power, new spending power, for the Northern Ireland Executive to sort out some of the issues that it faces. Mr Cameron said: "I was prepared to put on the table real spending power, new spending power, for the Northern Ireland Executive to sort out some of the issues that it faces.
"Spending power, if everything was agreed, potentially of as much as £1bn."Spending power, if everything was agreed, potentially of as much as £1bn.
"But a deal hasn't been possible. What I hope will happen now is the politicians here in Northern Ireland will work together to agree these vital issues about parades, about flags, about the past, about their budget.""But a deal hasn't been possible. What I hope will happen now is the politicians here in Northern Ireland will work together to agree these vital issues about parades, about flags, about the past, about their budget."
Taoiseach Enda Kenny said he believed the document put in front of the political parties on Thursday night addressed all of the issues.
Speaking after leaving the talks on Friday morning, Mr Kenny said the governments would continue to be available to the parties, but he believed the Northern Ireland politicians would be able to "conclude the outstanding issues".
Analysis: Mark Devenport, BBC NI political editorAnalysis: Mark Devenport, BBC NI political editor
The Stormont politicians say they will continue their discussions, and Northern Ireland Secretary Theresa Villiers and Irish Foreign Minister Charlie Flanagan indicate they are ready to assist the process in the coming days.The Stormont politicians say they will continue their discussions, and Northern Ireland Secretary Theresa Villiers and Irish Foreign Minister Charlie Flanagan indicate they are ready to assist the process in the coming days.
However, given the gulf between the financial assistance that the Stormont politicians are demanding and the borrowing facility being offered by the UK government, it is hard to see the conditions for a deal emerging soon.However, given the gulf between the financial assistance that the Stormont politicians are demanding and the borrowing facility being offered by the UK government, it is hard to see the conditions for a deal emerging soon.
If the deadlock persists over crunch questions like welfare reform, the danger will be that the Northern Ireland Executive cannot balance its budget.If the deadlock persists over crunch questions like welfare reform, the danger will be that the Northern Ireland Executive cannot balance its budget.
In that scenario, we could see a threat to the stability of the assembly or a move towards an early assembly election, perhaps in tandem with the Westminster election due in May 2015.In that scenario, we could see a threat to the stability of the assembly or a move towards an early assembly election, perhaps in tandem with the Westminster election due in May 2015.
What is the Reinvestment and Reform Initiative?What is the Reinvestment and Reform Initiative?
SDLP MP Mark Durkan said: "We know the prime minister said he has offered additional new money. Stormont sources say the bulk of this extra £1bn consisted of reassigning the Northern Ireland Executive's current borrowing power, known as the Reform and Reinvestment Initiative.
"There's clearly big differences between our education system and the English education system when the prime minister's idea of addition is essentially no new money." That facility currently allows Stormont to borrow £200m per year for new capital build projects.
He said much of the progress made in last year's cross-party talks, chaired by former US diplomat Richard Haass, was "being diluted". It is understood the prime minister proposed that a full £200m could be diverted in the first year towards funding a voluntary exit or civil service redundancy scheme, and £100m for five successive years, adding up to around £700m in total. This is why Stormont politicians are describing the cash as their own money.
Ulster Unionist leader Mike Nesbitt said he still believed a deal was possible over the Christmas period, if the political will was there. The prime minister has also offered an extra £10m per year for four years to fund a proposed new Historical Investigations Unit.
"It needs to be fixed urgently, as it looks like corporation tax is hanging by a thread," he said. "We need some mature politics in the next few days."
What's in the document?What's in the document?
The parties were presented on Thursday night with an 18-page document, Paper for the Parties, A Draft Agreement at Stormont.The parties were presented on Thursday night with an 18-page document, Paper for the Parties, A Draft Agreement at Stormont.
Seen by the BBC, the document has seven sections and examines issues such as finance and welfare, flags, identity and culture, parades, the past and institutional reform.Seen by the BBC, the document has seven sections and examines issues such as finance and welfare, flags, identity and culture, parades, the past and institutional reform.
Much of it relies on ideas contained in proposals from talks chaired by former US diplomat Richard Haass that ended without agreement last December.Much of it relies on ideas contained in proposals from talks chaired by former US diplomat Richard Haass that ended without agreement last December.
There is mention of a 15-member 'Flags and Culture and Identity Commission', which would report in 18 months' time.There is mention of a 15-member 'Flags and Culture and Identity Commission', which would report in 18 months' time.
There is also reference to a new Historical Investigations Unit, which was included in the Haass proposals.There is also reference to a new Historical Investigations Unit, which was included in the Haass proposals.
On parading, the document states that powers should in principle be devolved to the Northern Ireland Assembly. It says the Parades Commission would remain the body for adjudicating contentious parades until new legislation is in place.On parading, the document states that powers should in principle be devolved to the Northern Ireland Assembly. It says the Parades Commission would remain the body for adjudicating contentious parades until new legislation is in place.
The final section of the document looks at how any potential agreement could be reviewed.The final section of the document looks at how any potential agreement could be reviewed.
Mark Durkan of the nationalist SDLP said the prime minister's offer contained "essentially no new money", adding that much of the progress made in last year's cross-party talks, chaired by former US diplomat Richard Haass, was "being diluted".
Ulster Unionist leader Mike Nesbitt said he still believed a deal was possible over the Christmas period, if the political will was there, but it "needs to be fixed urgently" as proposals to transfer corporation tax powers to Stormont were "hanging by a thread".
Alliance Party leader David Ford said there was "a need for realism and to seriously engage with the issues in the government's paper".Alliance Party leader David Ford said there was "a need for realism and to seriously engage with the issues in the government's paper".
The prime minister said any deal had to properly address the issues. Further round-table talks on the past and financial matters were held on Friday afternoon.
Taoiseach Enda Kenny said he believed the document put in front of the political parties on Thursday night addressed all of the issues. British and Irish sources say the negotiations will reconvene next Wednesday and Thursday, while the parties may hold meetings before that.
He said the Irish and British governments would continue to be available to the parties, but that he believed the Northern Ireland politicians would be able to "conclude the outstanding issues". The first and deputy first ministers are due to speak to Mr Cameron again in London on Monday, at a meeting of the Joint Ministerial Committee which brings together the UK government and the leaders of Northern Ireland, Scotland, and Wales.
As Mr Cameron and Mr Kenny prepared to leave Stormont House, Sinn Féin leader Gerry Adams tweeted: "Two governments exiting after most amateurish, ham-fisted episode I have ever been involved in."