Opinion

ANALYSIS: Stormont needs mature solutions to problems created by funding shortfall

Secretary of State Julian Smith defends the British government's financial package in the House of Commons
Secretary of State Julian Smith defends the British government's financial package in the House of Commons Secretary of State Julian Smith defends the British government's financial package in the House of Commons

HOODWINKED, bounced or conned – it's difficult to know which is most appropriate to the situation the Stormont parties have found themselves in. Perhaps it's all three?

While there's an irony in the British government outmanoeuvring the DUP and Sinn Féin – two parties who really should know better than most about British government artifice – the upshot isn't especially promising for the wellbeing and sustainability of the freshly restored institutions.

The public wasn't privy to the negotiations that led to New Decade, New Approach or to the figures that may have been bandied about ahead of last week's deal. What's clear is that there is a significant disparity between what the executive parties asked for and what was delivered.

While nobody sincerely thought the Treasury would cough up the £5bn that Ulster University economist Esmond Birnie suggested was necessary to meet all the objectives on the Stormont wish list, it wasn't expected that the final figure would fall so far short.

Half the £2bn pledged comes as a consequence of the Barnett formula and is due to be spent in the region regardless of whether devolution is in place.

Up to a quarter of the remaining £1bn is outstanding from funds pledged as part of the DUP's confidence and supply deal with the Tories, leaving approximately £75m of 'new' money.

This of course is still a significant amount and it's money that would be very welcome to the devolved administrations in Wales and Scotland, yet when it comes to addressing the north's pressing problems in the health service, roads, welfare mitigations and water infrastructure, it appears wholly inadequate.

Moreover, the British government has already determined that a significant proportion be spent on specific projects, such as a new medical school in Derry and low emission buses.

On top of this, the package comes with "stringent conditions" that include "accountability for public spending" and "building sustainable public services". It's far from free money and it poses some tough challenges for the restored administration.

The options for the executive now are limited and even though there's a degree of public sympathy, throwing the head up and walking away isn't one.

There'll be disgruntlement from politicians and the finance minister in particular, but we're pretty much where we were with last week's deal, in that it's 'take it or leave it'.

These are far from ideal circumstances on which to embark on building sustainable institutions where collective responsibility replaces the silo mentality and party loyalty that prevailed in the previous administration.

However, if stability can be maintained it also offers an opportunity for Stormont to begin acting in a mature and strategic manner instead of favouring short-termism, populist policies and pet projects.

We will find out in the coming weeks and months whether our ministers are up to the task.