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EDITIONS
Thursday, 12 December, 2002, 09:15 GMT
NI 'faces terror tax'
Northern Ireland's population is going to be forced to pay a "terrorist tax" to fund future infrastructure investment, according to the DUP.

On Wednesday, direct rule minister Ian Pearson announced that almost £2bn in additional funds is to be spent on roads, schools, hospitals and water service over the next five years.

Mr Pearson gave details of the budget allocation for the province which will include the extra cash raised from low interest loans from the British Treasury and other sources.

That is clearly the result of money being diverted from sewage, from schools, from hospitals because of the terrorist activity

Edwin Poots
DUP

Much of the money will be spent on improvements to Northern Ireland's out-dated infrastructure.

Mr Pearson said people would see "significant improvements" in public services over the next three years.

'Peace dividend'

However, Democratic Unionist assembly member Edwin Poots said he had been angered by the budget announcement.

"What we have in Northern Ireland is an infrastructure deficit which runs up to £6bn," he said.

"That is clearly the result of money being diverted from sewage, from schools, from hospitals because of the terrorist activity - mainly of the IRA - and now the people of Northern Ireland have to pay for it.

"What we have now instead of a peace dividend is a terrorist tax - which people in Northern Ireland are going to have to pay for."
Edwin Poots
Edwin Poots: "Terrorist tax"

Sinn Fein assembly member Francie Molloy said it was "rubbish" to speak of a terrorist tax as there "had not been a peace dividend".

"Those who are deprived and those who are actually discriminated against west of the Bann are now being told they will have to pay more to be discriminated against," he said.

Suspended

Ulster Unionist assembly member Esmond Birnie said the executive had taken a collective view on the draft budget and programme for government.

However, he added: "The fundamental reality is that there is no doubt that we are going to have to invest more in the future and that will have to be paid for some way or another.

"The water rate charge isn't necessarily the only route."

Northern Ireland's power-sharing institutions were suspended on 14 October following allegations of continuing IRA activity.

Northern Ireland Office ministers took over the portfolios of those ministers in the suspended executive.

The government plans to raise the money from public private partnership programmes, from low interest loans and from departmental budgets.

But the public will also have to pay its share. That will come in the form of water charges as well as higher household rates.

 WATCH/LISTEN
 ON THIS STORY
BBC NI's business editor James Kerr:
"In due course we will see water charges and rates going up"
BBC NI's business editor James Kerr:
"The top spending priorities have already been established"
See also:

11 Dec 02 | N Ireland
24 Sep 02 | N Ireland
24 Sep 02 | N Ireland
25 Jun 02 | N Ireland
28 Sep 00 | N Ireland
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