HISTORIC PRESS RELEASE : New Economic Settlement for Northern Ireland [May 2002]

The press release issued by HM Treasury on 2 May 2002.

Barracks and prisons to be replaced by business and prosperity

The Government today announced a new £200m economic settlement for Northern Ireland, in addition to the transfer of military and security buildings for community use. Details were unveiled during a visit to Belfast by the Prime Minister Tony Blair and the Chancellor Gordon Brown.

The package, put together by the UK Government and the offices of the First Minister and Deputy First Minister on behalf of the Executive, includes:

• New powers for the Northern Ireland Executive to borrow up to £125m over two years;
• A further £75m made available from the Executive’s unallocated resources;
• Free transfer of the Maze Prison, Crumlin Road Goal, Ebrington Barracks and army bases at Magharafelt and Malone Road Belfast to devolved control for community use;
• A new strategic investment body for Northern Ireland to offer a strategic and coordinated approach to infrastructure investment in public services.

Speaking during a visit to the Odyssey Centre, the Chancellor said:

“Ex-army bases and prisons scar Northern Ireland’s landscape and symbolise the period of conflict. We want these sites to symbolise peace and prosperity and become the engine of economic and social regeneration in local areas. In place of the symbols of the old conflict and despair, there will be symbols of the new progress and hope – barracks and prisons of the past replaced by business and prosperity for the future.

The Northern Ireland Executive will have for the first time, new powers to borrow on its own account, raising spending power and offering greater economic freedom to make important decisions about new investment in infrastructure and public services. And we will help the Executive to develop a Strategic Investment Body for Northern Ireland to bring together the best expertise available to help to raise growth and competitiveness to the benefit of the people and business community of Northern Ireland.

This new momentum for reinvestment must be matched with reform, through more efficient use of resources and better managed services, delivering best value for money and high quality investment.

The economic settlement is a concrete demonstration of what can be achieved with devolution and offers faith in the future: the chance to build peace with prosperity and create an economy of opportunity for all.”