NI has '˜worst of all worlds', warns top economist

Northern Ireland is experiencing 'the worst of all possible worlds' due to a lack of political leadership, a leading economist has warned.
Dr Esmond Birnie said important strategic decisions are not being takenDr Esmond Birnie said important strategic decisions are not being taken
Dr Esmond Birnie said important strategic decisions are not being taken

Dr Esmond Birnie has claimed that, with the end of the financial year fast approaching, there is an urgent need for ministers to be put in place to take “hard decisions” regarding the incoming budget for 2018/19.

The former Ulster Unionist MLA’s remarks come amid speculation that the government is to announce plans for fresh talks next week, aimed at breaking the logjam at Stormont.

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Dr Birnie said the current political stalemate is preventing strategic decisions being taken on important issues such as health and education.

He told the News Letter: “We are in the worst of all possible worlds at this point in time, having no operational devolution or full-blooded direct rule; we are falling between two stools.

“We need to have a government; whatever form that takes is a matter for political debate. But the current situation of just keeping things ticking over can only go on for so long.”

Dr Birnie, a senior economist at the Ulster University, said some form of political leadership must be implemented sooner rather than later in order to avoid the “looming problem” of setting a budget for the incoming financial year.

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He added: “We are very much behind schedule at this point. Normally a budget is presented to the Assembly in December, debated and then there is further consultation in January and February before legislation is introduced in March.

“The situation as it stands is far from ideal, as there is no opportunity for debate, scrutiny or consideration of options.”

While he praised the NI Civil Service for “keeping the show on the road” since the collapse of the power-sharing institutions last January, Dr Birnie said politicians must now take over the reins once again.

He added: “Civil servants operate on a care and maintenance basis and they have been doing a good job over the past year.

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“But this current situation is really second best and what we need is political leadership in place to make strategic decisions.

“Otherwise, fundamental decisions will not be taken about what we should be doing to achieve cost savings or have better quality services.

“It is time for hard decisions to be made. The penalty for not making them now is that the situation will only get more difficult as time goes on.”

DUP MP Gregory Campbell has claimed that some form of direct rule looks to be inevitable unless an agreement can be reached within the next month.

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In yesterday’s News Letter, Mr Campbell said he no longer believes Sinn Fein is even willing to enter fresh talks to restore power-sharing in the near future, let alone strike a deal.

Speaking on BBC’s Talkback programme yesterday afternoon, the East Londonderry MP added: “We are coming to the period when departmental permanent secretaries have to devise their priorities and spending limits for the next year, and that has to be done in the next three-four weeks.”

Mr Campbell said that while his party remained “open, ready and willing” to return to devolution, he added: “No one should think that we are prepared to do anything in order to get it back.”

Despite several rounds of negotiations aimed at salvaging devolution over the past year, the DUP and Sinn Fein remain at loggerheads over a number of issues, including calls for an Irish language act.

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Alliance deputy leader Stephen Farry said there is a need to “rediscover the meaning” of the Good Friday Agreement as its 20th anniversary approaches.

He claimed a number of participants in the Stormont impasse were “failing to understand the importance of interconnected relationships” in the 1998 agreement.

“NI as a divided society and contested space can only be governed successfully through a shared approach which recognises and respects diversity,” Dr Farry added.