British chancellor Gordon Brown yesterday elaborated on the financial plan to support a powersharing government in Northern Ireland if the parties agree next week.
In addition to the £35 billion (€51 million) now pledged to a new executive over the next four years, devolved ministers would be able to access £1 billion to improve infrastructure and job prospects in the North.
Mr Brown also revealed that the government had signed a retail consortium agreement with major companies to provide possibly 5,000 jobs for the North over the next few years.
He also confirmed that Sir David Varney, the former head of the inland revenue, had been asked to carry out a review of the different tax rates between Northern Ireland and the Republic.
The chancellor said: "This is an historic opportunity to move forward. I believe the Northern Ireland political parties are all serious about what can be done to achieve that.
"I believe that today by making possible the resumption of the executive through having the resources that they need, the potential for creating the jobs that they can, and helping look at some of the challenges they face, we can move this process forward.
"Peter Hain [ Northern Ireland Secretary] and I had a very successful and constructive meeting and we are very grateful to all the parties for what they did." Northern Ireland's politicians are facing a deadline of next Monday to set up a new powersharing executive.
If they fail to appoint a team of devolved ministers, the economic package offered by Mr Brown to bolster devolution will be withdrawn and the Assembly will be closed down.
However, SDLP leader Mr Mark Durkan said Mr Browne's offer of additional money was insufficient.
"We need more and we need to work for more than the chancellor has offered. Indeed, £400 million of the 'extra one billion' is actually coming from the Irish Government," he added.
Mr Durkan voiced his party's disappointment over the British government's position on corporation tax in the face of cross-party calls for it to be lowered to the Republic's 12.5 per cent level.
"Despite a united argument, all we have on corporation tax is a review run by the treasury and headed by the former boss of the inland revenue," he said.
"This is obviously a disappointing result for now, but we must continue to put a robust case for harmonising the rate with the South's and addressing other tax anomalies that hamper business in Northern Ireland."
The Foyle MP said Mr Brown's "extra £1 billion" comprised £400 million coming from the Irish Government; £200 million coming from end-year flexibility, which is our own money recycled; and £400 million of new money which would come as £100 million for four years to cover the Innovation Fund and go towards water.
Sinn Féin said that while progress had been made, more work still had to be done.
Ulster Unionist leader Sir Reg Empey said the talks had produced "some modest improvement".
Northern Ireland's largest business organisation also commented on the chancellor's offer.
Speaking from the Federation of Small Business (FSB) conference, which is being held in Belfast for the first time, FSB policy head Wilfred Mitchell said: "While we are seeking further information on the chancellor's statement, it is clear that some progress has been made in improving the package on offer."