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Northern Ireland crisis talks fail to resolve stand-off over welfare reforms Northern Ireland crisis talks fail to resolve standoff over welfare reforms
(about 4 hours later)
Cross-party cooperation in Northern Ireland has come under fresh strain as emergency talks aimed at preventing the collapse of the power-sharing executive failed to resolve a standoff over welfare cuts.Cross-party cooperation in Northern Ireland has come under fresh strain as emergency talks aimed at preventing the collapse of the power-sharing executive failed to resolve a standoff over welfare cuts.
The crunch meeting at Stormont Castle was attended by the Northern Ireland secretary, Theresa Villiers, the Irish foreign affairs minister, Charlie Flanagan, and leaders of the Stormont assembly’s five main parties.The crunch meeting at Stormont Castle was attended by the Northern Ireland secretary, Theresa Villiers, the Irish foreign affairs minister, Charlie Flanagan, and leaders of the Stormont assembly’s five main parties.
Despite being admitted to hospital for a heart condition last week, the Democratic Unionist party first minister, Peter Robinson, was also present.Despite being admitted to hospital for a heart condition last week, the Democratic Unionist party first minister, Peter Robinson, was also present.
Before the negotiations, the DUP issued an ultimatum to other parties that they would introduce a budget in the coming days based on the assumption that welfare reforms had been introduced to Northern Ireland. Robinson said his party had “come to the end of the road and were not prepared to fudge the issue any further”. Before the negotiations, the DUP issued an ultimatum to other parties that it would introduce a budget in the coming days based on the assumption that welfare reforms had been introduced to Northern Ireland. Robinson said his party had “come to the end of the road and were not prepared to fudge the issue any further”.
Emerging from the meeting, Sinn Féin’s Conor Murphy did not immediately rule out the DUP’s budget plan. “The weakness in it,” he said, “is it doesn’t seem to take account for the fact that should we even agree a budget – a fantasy budget or a real budget – in the next number of weeks that could be further undermined by further in-year cuts imposed by the Treasury. Signs of political will I have to say are scarce.” Emerging from the meeting, Sinn Féin’s Conor Murphy did not immediately rule out the DUP’s budget plan. “The weakness in it,” he said, “is it doesn’t seem to take account for the fact that should we even agree a budget – a fantasy budget or a real budget – in the next number of weeks that could be further undermined by further in-year cuts imposed by the Treasury. Signs of political will, I have to say, are scarce.”
Villiers’ assessment was more gloomy. “The situation looks increasingly grim,” she said. “No resolution was found at this afternoon’s meeting and time is running out.Villiers’ assessment was more gloomy. “The situation looks increasingly grim,” she said. “No resolution was found at this afternoon’s meeting and time is running out.
“If the impasse on welfare reform is not resolved, then the whole Stormont House agreement is in jeopardy, including the £2bn financial package and the new institutions on the past.“If the impasse on welfare reform is not resolved, then the whole Stormont House agreement is in jeopardy, including the £2bn financial package and the new institutions on the past.
“We now face the real prospect of emergency budget provisions coming into operation by the end of July with a negative impact on front line public services. Implementation of the Stormont House agreement is the only way to get things back on track.” “We now face the real prospect of emergency budget provisions coming into operation by the end of July with a negative impact on frontline public services. Implementation of the Stormont House agreement is the only way to get things back on track.”
The Stormont House agreement, which had initially been welcomed as a means of stabilising power-sharing in Belfast, was thrown into uncertainty last week after a bid to introduce welfare reforms failed to pass the assembly.The Stormont House agreement, which had initially been welcomed as a means of stabilising power-sharing in Belfast, was thrown into uncertainty last week after a bid to introduce welfare reforms failed to pass the assembly.
It was vetoed jointly by Sinn Féin and the nationalist SDLP who deployed a “petition of concern” under which bills can be defeated if one side of the sectarian/political divide claims there is insufficient cross-community support for a law. It was vetoed jointly by Sinn Féin and the nationalist SDLP which deployed a “petition of concern” under which bills can be defeated if one side of the sectarian/political divide claims there is insufficient cross-community support for a law.
Rejection of the welfare reform bill now endangers other elements of the agreement, such as devolution of corporation tax powers, a civil service redundancy scheme and structures to address the legacy of the Troubles.Rejection of the welfare reform bill now endangers other elements of the agreement, such as devolution of corporation tax powers, a civil service redundancy scheme and structures to address the legacy of the Troubles.
It has also left the power-sharing executive facing an estimated £600m funding gap this financial year – partially as a consequence of Treasury penalties for not implementing welfare reforms running at just under £10m per month.It has also left the power-sharing executive facing an estimated £600m funding gap this financial year – partially as a consequence of Treasury penalties for not implementing welfare reforms running at just under £10m per month.
The run-up to the Stormont Castle meeting had been marked by mutual recriminations. Villiers accused Sinn Fein and the SDLP of being “deficit deniers” who think they could “simply go on spending money without any regard to the consequences” and said they represented a real danger to public services. The runup to the Stormont Castle meeting had been marked by mutual recriminations. Villiers accused Sinn Fein and the SDLP of being “deficit deniers” who think they could “simply go on spending money without any regard to the consequences” and said they represented a real danger to public services.
In an article for the Irish News, Villiers suggested that if Northern Ireland wanted to be exempt from national spending settlements then the alternative would be “complete fiscal autonomy”.In an article for the Irish News, Villiers suggested that if Northern Ireland wanted to be exempt from national spending settlements then the alternative would be “complete fiscal autonomy”.
She added: “And I have one question for them. Which taxes would rise, and by how much, to cover the transfer of money each year to Northern Ireland from the UK Treasury? ... The current deadlock over welfare reform not only threatens the Stormont House agreement but could also put the devolved institutions at risk.” She added: “And I have one question for them. Which taxes would rise, and by how much, to cover the transfer of money each year to Northern Ireland from the UK Treasury? The current deadlock over welfare reform not only threatens the Stormont House agreement but could also put the devolved institutions at risk.”
Sinn Féin, which is straining to keep its anti-austerity policies north and south of the border in alignment, warned of an impending crisis that could “engulf the political institutions” of Northern Ireland.Sinn Féin, which is straining to keep its anti-austerity policies north and south of the border in alignment, warned of an impending crisis that could “engulf the political institutions” of Northern Ireland.
Sinn Féin has faced criticism from its opponents in the Irish Republic for opposing austerity measures there while seemingly being prepared to implement similar measures in Northern Ireland.Sinn Féin has faced criticism from its opponents in the Irish Republic for opposing austerity measures there while seemingly being prepared to implement similar measures in Northern Ireland.
Alex Attwood, the SDLP’s Stormont House talks negotiator and an assembly member, called for an end to “brinkmanship” but added: “On 8 July, a Tory chancellor will deliver a budget full of further cuts to public spending and social security.Alex Attwood, the SDLP’s Stormont House talks negotiator and an assembly member, called for an end to “brinkmanship” but added: “On 8 July, a Tory chancellor will deliver a budget full of further cuts to public spending and social security.
“That forms a pivotal context to the current political situation and all parties must be vocal in their resistance to austerity max. The British government cannot be allowed to hold the devolved institutions to ransom in their pursuit of all out austerity.” “That forms a pivotal context to the current political situation and all parties must be vocal in their resistance to austerity max. The British government cannot be allowed to hold the devolved institutions to ransom in their pursuit of all-out austerity.”
Unless political leaders agree a lasting deal on welfare, there is the danger of a senior civil servant stepping in to take over departmental spending later in the summer, under tight financial constraints.Unless political leaders agree a lasting deal on welfare, there is the danger of a senior civil servant stepping in to take over departmental spending later in the summer, under tight financial constraints.
Relieving the parties of their responsibility for allocating funds would increase the chances of one of the main partners in the executive – the DUP and Sinn Féin – walking away and collapsing the institutions.Relieving the parties of their responsibility for allocating funds would increase the chances of one of the main partners in the executive – the DUP and Sinn Féin – walking away and collapsing the institutions.