Public Expenditure (Northern Ireland) (Hansard, 15 December 1994)

§ 6. Mr. McGrady
To ask the Chancellor of the Exchequer what consultations he had with the Northern Ireland Office in drawing up his public expenditure allocation to Northern Ireland for the fiscal year 1995–96.

§ Mr. Aitken
My right hon. and learned Friend the Secretary of State for Northern Ireland was fully involved in the decisions about future public expenditure in Northern Ireland.

§ Mr. McGrady
I thank the Minister for that reply. May I draw to your attention, Madam Speaker, and that of the Minister, that the announcement regarding public expenditure in Northern Ireland was made on Monday, not to the House or to Members of Parliament who represent Northern Ireland but to the press? Notwithstanding that, I am sure that the Minister will agree that the advent of peace in Northern Ireland has created new public expenditure priorities. Expenditure on security is being reduced, increasing the need for further expenditure on other parts of the public sector and, in particular, on job creation. It is estimated that peace will mean the loss of more than 25,000 jobs in Northern Ireland, and that vacuum must be filled. Will the Minister assure me that the financial benefits gained from spending less on security will be used in the public sector on job creation and not clawed back into the Treasury? That money should be spent for the benefit of Northern Ireland to enhance its future chances.

§ Mr. Aitken
As today is the first anniversary of the Downing street declaration, I am glad to join the hon. Gentleman in welcoming any proposals that will strengthen the prospects for peace, prosperity and investment in Northern Ireland. It may be premature to speak about a large peace dividend, because it is too early to lower the guard on security. I emphasise, however, that prospects for investment, as highlighted by my right hon. Friend the Prime Minister at yesterday's meeting of the Investment Forum, are excellent.
The Government have no intention of taking money away from Northern Ireland—far from it. As we made clear in the announcement at the Essen conference, we have shown our good will by ensuring that any new investment money from the European Union or from other sources will be considered in addition to the Government's planned spending growth and investment in Northern Ireland. The prospects therefore look good for a new era of better investment in Northern Ireland.