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Cameron proposes Northern Ireland financial package Northern Ireland talks end without agreement
(34 minutes later)
David Cameron has proposed a potential financial package for consideration by Northern Ireland politicians involved in complex cross-party talks, Downing Street sources have said. David Cameron has left political talks in Northern Ireland conceding that no deal is possible at the moment.
The package was tabled in Belfast alongside an amended Heads of Agreement document – outlining the state of negotiations on all of the issues – presented by the British prime minister and his Irish counterpart, Enda Kenny, in the early hours of Friday. Talks will resume on Friday morning. The prime minister said he had tabled a £1bn financial package but that would only be made available to the executive if an agreement could be reached on outstanding disputes.
Negotiations began in Belfast on Thursday and ran past midnight as the two premiers strove for a breakthrough on the disputes that continue to destabilise the powersharing administration. Many of the region’s politicians are unhappy with the size of the financial offer, with some describing it as “derisory”.
No 10 sources said: “In the early hours of Friday the prime minister and the taoiseach presented an amended Heads of Agreement document to parties taking part in the talks at Stormont House; additionally the prime minister tabled a potential financial package to the parties for them to consider overnight. Cameron and the Irish taoiseach, Enda Kenny, both held discussions with the executive’s five parties in an effort to forge a deal.
“The PM informed the parties he would be returning for further talks on Friday morning before departing Northern Ireland at 10am.” Leaving Stormont House on Friday morning, Cameron said: “We have made good progress overnight and today but a deal is not going to be possible today.”
The talks process is now at the end of its ninth week, with all sides insisting that if a deal is to be done, it must be done before Christmas. As well as long-standing disputes over flags, parades and the toxic legacy of the Troubles, the five parties in the power-sharing coalition are trying to achieve consensus on budgetary problems facing the devolved institutions, particularly the impasse over the implementation of the UK government’s welfare reforms in Northern Ireland.
As well as longstanding disputes over flags, parades and the toxic legacy of the past, the five parties in the power-sharing coalition are trying to achieve consensus on budgetary problems facing the devolved institutions, particularly the impasse over the non-implementation of the UK government’s welfare reforms in Northern Ireland. The structures and governance arrangements at Stormont are also on the agenda. The structures and governance arrangements at Stormont are also on the agenda.
But the most pressing issue is the budgetary situation. Ministers in Belfast have already had to ask for a £100m loan from the Treasury to balance their books this financial year, and if a deal on welfare reform is not agreed they will face about £200m of government penalties for non-implementation. Ministers in Belfast have already had to ask for an emergency £100m loan from the treasury to balance their books this financial year, and if a deal on welfare reform is not agreed they will face about £200m in government penalties for non-implementation.
As it is unlikely the administration would be able to absorb such a financial burden, the future of the executive in effect depends on a resolution to the welfare reform issue. As it is unlikely the administration would be able to absorb such a financial burden, the future of the executive effectively depends on a resolution to the welfare reform issue.
Cameron, who has faced calls to stump up more funds, sounded optimistic as he arrived at Stormont House to begin discussions on Thursday.
“We have got to demonstrate we can resolve these issues,” he said. “The people inside this room will be discussing and talking about them but the people outside the room, they are the people that matter. They want to see their politicians deliver.”
Kenny said: “Hopefully we can reach a conclusion on a number of matters that are important for Northern Ireland and for the relationship between Northern Ireland and the government in the [Irish] Republic.”