9 June 2003
NI GRAND COMMITTEE DEBATES REINVESTMENT AND REFORM INITIATIVE
The Reinvestment and Reform Initiative (RRI) provides the vehicle by which Northern Ireland can secure quality public services and is an imaginative solution to the infrastructure deficit that exists here, Finance and Economy Minister Ian Pearson told MPs today.
Mr Pearson was speaking in the House of Commons at the opening of a Northern Ireland Grand Committee debate on RRI, during which he outlined future plans and progress in the implementation of the initiative.
"In effect the RRI enables us to press the fast forward button to make it possible to solve long standing problems in hospitals, roads, water and sewerage. We are trying to achieve in years what until now would have taken a generation," he said.
The Minister detailed various aspects of RRI designed to bring forward a long-term strategic approach to investing in Northern Ireland’s infrastructure to ensure a tangible improvement for its people through the delivery of better services in a range of essential areas.
"It must be realised," he said, "however, that the infrastructure deficit which exists in Northern Ireland, cannot be solved by the public sector acting on its own. We need to ensure that the resources available to us are put to optimum use and maximum investment returns are obtained.
"The Strategic Investment Board, as well as ensuring that the most pressing infrastructure problems are addressed in a strategic, integrated and cohesive way, will be the agent of government that will help us to drive extra investment from the private sector into Northern Ireland’s public services and improve the quality and speed of delivery of many key infrastructure projects."
Turning to what he described as the contentious issues of the review of rating policy and water reform, the Minister said: "RRI will make use of a new borrowing power that will give the administration the option of using additional revenue sources – this is essentially the normalisation of Northern Ireland’s financial system, which has been out of line with practice elsewhere for many years. We have to accept that households in Northern Ireland currently contribute much less towards their public services on average than elsewhere in the United Kingdom. The additional revenue sources will comprise mainly a new fairer rating system, and domestic water charges.
"The key point is that these steps would have been needed anyway – with RRI they can be used not just to contribute to recurrent spending, but to lever in low cost borrowing, which could accelerate dramatically the pace of infrastructure investment.
"A reformed and fair rating system must be achieved if we are to fully utilise the potential to address Northern Ireland’s infrastructure deficit.
"Likewise we need to invest heavily in our water and sewerage services - £3 billion over the next 20 years. Through the Strategic Investment Programme we have already made a start – but we cannot sustain the planned increase in investment over the long term without diverting resources from other public services such as health and education.
"Indeed, reform – both in the sense of efficiency improvement and the provision of better services that meet new needs – is at the heart of this whole approach. The public deserves good services. That requires us to continuously explore what is needed, and how best to provide it. Reform therefore is integral to public sector management, and must be core to all the areas where we are investing."
On the subject of Military and Security Assets handed over as part of the RRI the Minister said that these assets should be: "used to fuel a unique programme of economic and social renewal and structures had now been developed to take this forward such as the Urban Regeneration Company for the Derry City Council area which is looking at the potential development of the Ebrington Barracks site; the Consultation Panel for the Maze; and the involvement of the Phoenix Trust at the Crumlin Road Gaol."
He added: "It is particularly important that sites and assets which have been associated with militarisation and conflict should be transformed into symbols and engines of peaceful economic and social regeneration."
NOTES TO EDITORS:
Information on the Reinvestment and Reform Initiative can be accessed on the OFMDFM website at –
www.ofmdfmni.gov.uk/rriFurther information contact OFMDFM Press Office, tel. 028 9037 8116 or mobile 07850 187134
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