DUP warn Coleraine development plans under threat from government's City Deals funding 'pause' as Londonderry and Belfast get reprieve
Multi-million pound developments in university and business projects in Coleraine are under “immediate” threat from the government’s decision to pause investment in City Deals the DUP says – despite funding for Belfast and Londonderry being secured.
The party is seeking an urgent Council meeting to discuss the implications of the Labour Government’s decision, which was announced on Friday afternoon.
Two of Northern Ireland’s city and growth deals will not be affected by the funding freeze, according to Stormont ministers.
It had initially been thought that all four deals in Northern Ireland would be impacted by the decision – which left uncertainty hanging over the deals ahead of the Budget at the end of October.
However, deputy First Minister Emma Little-Pengelly has said that the deals for the Belfast regions and Londonderry City and Strabane will be unaffected.
The Londonderry deal is now expected to be signed next week as originally intended – but deals for Causeway Coast and Glens and Mid South West remain uncertain.
The DUP says two major projects in Coleraine and one in Limavady are now in doubt. That includes £20m to fund the Centre for Food and drug discovery at the Ulster University in Coleraine; £14.9m for a business “innovation and incubation hub” at Atlantic Link in Coleraine and £1.2m for a “food innovation hub” at the North West Regional College in Limavady.
Causeway DUP councillor Mark Fielding said “More than £36m has disappeared from our plans overnight. This is a shameful decision and has rocked our development plans for the Council area.
“City Deals were a key component of the DUP’s Confidence and Supply arrangement in 2017. In July this year, the new Secretary of State Hilary Benn explicitly indicated that Labour would honour the City Deal agreements reached with the previous Government. Why has this position changed?
“We are seeking an urgent meeting of the full Council to discuss the immediate implications and we will be requesting that the Secretary of State comes to a Council meeting to explain to the people why the Labour Government has decimated our development plans.”
The DUP says other projects that could be affected in Causeway Coast and Glens Council are:
- Bushmills connected: regeneration project
- Dungiven regeneration project
- Cushendall innovation centre
- Coleraine leisure and wellbeing centre
- Connected Causeway traffic and parking
- Portrush to Bushmills greenway
In an update on social media on Saturday night, deputy First Minister Emma Little-Pengelly said: “The Belfast city deal is unaffected by the Treasury pause. This includes all the projects including Bangor, Lagan Valley and beyond. The North West City deal is also unaffected and will proceed. I am seeking urgent clarity and pushing case on other two City Deals”.
Foyle MP and SDLP leader Colum Eastwood said: “I am glad that we have made progress over the last 24 hours and have received confirmation that the Derry City deal will continue as planned.
“This is a good start and we have more work to do. Derry and the north west, in particular, needs this level of capital investment to kickstart our ambitions for greater regional balance and progress higher education provision. It should never have been placed in doubt.”
A Government spokesperson said: “We understand the importance of the Derry City and Strabane deal, which is at a very advanced stage. The UK Government is committed to continuing to work closely with the Northern Ireland Executive on this deal, to enable it to deliver growth and opportunity.”