Villiers warning over executive finances if welfare deal not done

http://www.bbc.co.uk/news/uk-northern-ireland-politics-33539119

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The secretary of state has warned that unless there is a deal over welfare reform the executive will face serious financial difficulties in the autumn.

Theresa Villiers said the impasse over welfare needed to be bridged.

She said that otherwise there "are likely to be significant problems by September and October".

She was asked by the North Antrim MP Ian Paisley if she was making preparations for the collapse of political institutions at Stormont.

Ms Villiers said: "I don't think we are at that point yet."

'Grave'

She was giving evidence to the Northern Ireland affairs committee at Westminster.

She added: "The situation is grave. There is a threat to the continued effectiveness of the institutions and a threat to a potential collapse.

"We are not there. It is certainly possible to resolve this dispute."

Asked by the Labour MP Dave Anderson if the authorities in London were preparing to take welfare powers back, she said that while that could not be ruled out, "it is not something we want to resort to".

She added that the government had "been forced" to look at this issue, but "we do not want to go down that road".

Ms Villiers also said that she hoped the assembly would sit until next year's poll.

She told her fellow MPs that she believed it was in "no-one's interest to have an early election".

In a session lasting just under two hours, the secretary of state gave evidence to the committee on a wide range of issues including, the economy, political donations, human rights and parading.

'Damaging'

Ms Villiers said the trouble witnessed on the streets of Belfast in recent days meant it was a "solemn time for Northern Ireland".

She added that the violence was "hugely damaging for Northern Ireland" and she sent her sympathies to all those who had been injured.

In her first evidence session of the new parliament, Ms Villiers was questioned by a number of Northern Ireland politicians including the SDLP leader Alasdair McDonnell, the DUP MP Gavin Robinson, the UUP MP Danny Kinahan and the independent MP Lady Sylvia Hermon.