Education and health to benefit from NI budgets

The North's Development Minister, Mr Paul Murphy, has unveiled plans for public spending in Northern Ireland until 2002

The North's Development Minister, Mr Paul Murphy, has unveiled plans for public spending in Northern Ireland until 2002. Major increases in education and health budgets are the main features of provisional figures presented in a consultation paper to the Assembly.

In his first address to the chamber, Mr Murphy yesterday outlined how Assembly members would be directly responsible for up to £7 billion sterling of expenditure from next year. British government expenditure in the North will increase by £1.4 billion over the next three years, rising to more than £10 billion in 2002.

The reductions of hospital waiting lists and class sizes have been given priority over housing and urban regeneration. Mr Murphy said improving those areas would improve the quality of life for everyone in Northern Ireland.

Expenditure on law and order fails to reflect the trend of demilitarisation and continues to rise above current levels, peaking in 1999 with a £990 million allocation. According to Mr Murphy, initial redundancy payments must be accounted for, with considerable savings envisaged beyond 2001, when the spending will fall to £896 million.

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In questions to Mr Murphy, Assembly members raised issues from agriculture to school transportation schemes. Politicians from both sides of the chamber also denounced the suggestion by the British Chancellor, Mr Gordon Brown, suggestion that Belfast port should be privatised to finance expenditure totals.

Mr Sean Neeson, leader of the Alliance Party, said the proposed sale was like "selling off the family silverware". Ms Joan Carson (UUP) said the sale of the port was being treated as a "throwaway bargain".

Members were also concerned by the proposed 4 per cent cut in the trade, industry and energy budget over the next three years. Mr Sean Farren, the SDLP economics spokesman, said this could affect plans to extend the natural gas pipeline, which now serves only greater Belfast. Earlier, a report was presented from a 19-member cross-party committee on the procedural consequences of devolution. The report provides suggestions to the procedure committee of the House of Commons on the future relationship envisaged between the Assembly and Westminster.

The document's use of the term "sovereignty" in relation to the Westminster parliament was criticised by Mr Alban Maginness (SDLP), who described the term as "an old-fashioned concept that should be jettisoned". Unionist insistence on the inclusion of the term was also criticised by Mr Francie Molloy (SF), who argued that the issue of sovereignty had changed as a result of the Belfast Agreement.

Meanwhile, the presiding officer, Lord Alderdice, has issued formal written cautions to a number of Assembly members he believed had "sailed a little close to the wind" with disparaging comments they had made in the chamber. He warned the unnamed members that disciplinary action could follow if they did not heed this warning.