DUP economy minister Diane Dodds has warned that the loss of EU funding “represents a huge financial risk” for her department.
Speaking to the assembly's economy committee yesterday, the pro-Brexit former MEP said European funding was worth around £100m per year to the department and its various arms-length bodies, including Invest NI.
She said it is facing a £70m shortfall in 2021/22, with little sign London will step in to fill the void.
The British government has said it will create the UK Shared Prosperity Fund to replace the loss of EU support programmes.
But Ms Dodds, whose party campaigned for Brexit, said initial indications "suggest that the UK shared prosperity funding will be significantly less than current EU funding".
“Informal indications suggest £11m for NI. This represents a huge financial risk for the department’s ability to support economic recovery.”
The economy minister also said the “very poor financial settlement” for the north’s block grant from the UK Chancellor for 2021/22 represents in real terms a 15 per cent cut to her departmental budget from April.
In all, the Department for the Economy (DfE) faces a £124m budget shortfall.
“This is due to inescapable pressures of £54m, which includes £34m Covid financial tails and the removal of EU funding of which £70m is required next year. This is not a sustainable way to support economic recovery,” said Ms Dodds.
“It is clear that this will be an extremely challenging settlement for my department.”
Sinn Féin MLA John O'Dowd claimed Ms Dodds "has finally woken up to the realities of Brexit and the hugely negative impact on our economy".
"That has been the message coming from the business community, from traders, from retail, from agriculture and from every aspect of society for the last four years but the DUP are only hearing it now. "
