Mature debate required to tackle impact of cuts – Wilson

The Executive must work together to manage the impact of budget cuts according to Finance Minister, Sammy Wilson.

The Minister was speaking at a conference being held by the Institute of Revenues, Rating and Valuation and the Chief Executive’s Forum at the Belfast City Hall in Belfast.

Addressing delegates on the impact of budget cuts, the Minister said: “These are challenging times and over the next few years we will see massive reductions in public expenditure, not seen since the 1970s.

“While not of our making, we must rise to this challenge so that key frontline public services can be delivered in the best way. It is not enough to say we all need to work smarter, we – that is the Northern Ireland Executive - need to decide what our real priorities are because we can no longer afford to deliver the full range of commitments set out in the Programme for Government. We will need to make these hard choices now and there will have to be bigger cuts elsewhere.

“Economy or health and education? Even that choice is not a straightforward one because public sector spending in social policy areas directly affects our economy.”

Mr Wilson underlined the fact that the new financial environment necessitated a more constructive approach to the debate on public spending priorities, as difficult decisions were now inevitable. He continued: “In my role as Finance Minister, I often hear calls for more funding for projects within individual Ministerial portfolios. What I rarely, if ever hear, is a mature discussion on where this funding should come from.

“Following the Chancellor’s announcement of last week, it is clear that the predicted period of public spending cuts is no longer something coming down the tracks – it is here now; today. As such, this will necessitate measured debate in the coming months on how the Executive can use its resources to best effect. Individual Ministers may need to make unpopular decisions in order to safeguard public services. The Executive, meanwhile, will need to take important strategic decisions, including, for example, how long we can afford to continue deferring water charges.”

The Minister went on to highlight his view on what the future should hold: “My position is clear, we must first maximise efficiencies before asking people to pay more. This means collectively addressing the cost of government, or rather over government, in Northern Ireland, including the number of Departments, Quangos, and not forgetting MLAs.

“Available money must also be used in the best possible way. While much is being done to remove slack from the system, there is also much more there for the taking. £790million is being made available to Departments this year as a result of ongoing efficiency savings. Much more could be available through improving the way public services are delivered, driving efficiency and realising savings.

“All Departments will have hard decisions and choices to make in order to ensure that our public services are delivered as efficiently, and with as little waste, as possible. What I want to see is a prioritisation of core front line services and programmes that make a real difference to people, while also ensuring that there is the necessary stimulus to develop and sustain our economy.

“The UK government’s £6.2billion worth of cuts just announced for the remainder of this financial year is likely to be only the start of it. The UK spending review that will be delivered in the autumn will signal hard financial times ahead.

“So, there will be hard decisions to be taken not only by me, as Finance Minister, but also my Executive colleagues. Ratepayers and the general public understand that following the banking crisis, the UK government has nothing stashed under the mattress. We are living well beyond our means.

“The important decisions that lie ahead must not become the subject of cheap political point-scoring, but must be taken in the interests of the wider Northern Ireland population and economy. Importantly, no one Department can be immune from the effects of the future constraints on public services. For my part I will need to take a hard look at issues such as public sector pay, sustaining improved performance in Land and Property Services and increasing revenue collection, as well as the delivery of shared or streamlined services.

“All Departments, however, will have their part to play.”

Notes to editors:

1. The conference is being held by the Institute of Revenues, Rating and Valuation and the Chief Executive’s Forum, discussing challenges currently facing public services across Northern Ireland.
2. The Institute of Revenues Rating & Valuation has over 5,000 members and is the largest professional institution operating in the field of revenues, benefits and valuation. The Institute’s main aim is to support its members’ professional and personal development and the sharing of best practice.
3. The Chief Executives' Forum is the association of chief executive officers of public bodies in Northern Ireland. The Forum aims to support the democratic process by promoting excellence in public service and, in doing so, to encourage innovation and develop its leaders.
4. All media inquiries should be directed to DFP Press Office (Telephone: 028 9052 7374; Fax: 028 9052 7149). Out of office hours please contact the duty press officer via pager number 07699 715 440 and your call will be returned.