Bringing financial stability will require innovation and efficiency – Archibald

Bringing financial stability to Northern Ireland’s public services will require brave decisions and a “relentless focus” on innovation and efficiency, Stormont’s Finance Minister Caoimhe Archibald has said.

Ms Archibald, who will soon bring her first budget to the Assembly, said departments had to be realistic as money available cannot keep up with demand.

The UK Government pledged a £3.3 billion package to support the return of devolution in Northern Ireland earlier this year.

However, the financial challenges facing Stormont departments were laid bare this week when it emerged that the resource and capital bids made by ministers to Ms Archibald are far in excess of the funds available to her.

In an article in the Irish News, the Sinn Fein minister said she was fully committed to providing the best possible public services.

She added: “However, there is no escaping that the money we have can’t keep up with demand.

“We have to be realistic in terms of what we can do with the existing funding available.

“Demands on our budget far outstrip the funding available.

“For every £1 we have to spend on day-to-day funding for public services we currently have three times as many demands.

“Similarly for every £1 we have to spend on building hospitals, schools, sports and community facilities and roads, the demand is one-and-a-half times more what we have available to spend.”

The Finance Minister said this meant difficult decisions would have to be made.

She added that the “scale of the challenges facing us won’t be fixed by one budget”.

Ms Archibald added: “All ministers are passionate about delivering for their areas and for citizens. But at this point, we simply do not have the funding to do everything.

“We all recognise the need for transformation and reform. We need to look at options to deliver efficiencies, generate revenue, enhance borrowing powers, and explore the potential for more fiscal powers.

“Financial sustainability in the longer term will require brave decisions, collaborative working, and a relentless focus on innovation and efficiency in service delivery.

“This can only be achieved through partnership working, a willingness to accept change, to challenge the status quo and to make long-term strategic decisions.

“That is what an effective, responsible government looks like.

“It’s a massive challenge and the path ahead isn’t straight or smooth. It is going to take patience and people working together for the greater good.”

She also said the way Northern Ireland is funded by the UK Government has to change.

She said: “The financial deal indicates a cliff edge that will lead to the north being funded below the level required.

“In this scenario, we will not be able to properly fund our public services.

“This is a trajectory that I am not willing to accept and have been pressing Treasury hard to ensure our longer-term funding reflects our level of need.

“The British Government’s lack of investment in public services is having a negative impact on funding for all devolved administrations.

“We must be provided with adequate funding so we can efficiently and effectively run our public services.”