03 February 2006
A 'year zero' comprehensive spending review of all public sector spending in Northern Ireland has been announced by secretary of state Peter Hain. The review could lead to the abolition of some government departments.
'We will continue to increase spending on public services in Northern Ireland each and every year, but we must be prepared to abandon established and entrenched spending programmes whose value has diminished with the passage of time,' said Hain.
'Instead, I want to see public expenditure targeted on those areas that will enable Northern Ireland to take its place as a highly competitive region with a growing and vibrant economy where public services are delivered in the most cost-effective way.'
The Hain review will be supported by an independent review of education spending, comparable to the recent and very critical review of health spending by Professor John Appleby of the King's Fund. The Appleby review has accelerated the restructuring and reform of the health service in Northern Ireland.
Hain's broader review promises to do to central government what the review of public administration is doing to councils and health agencies – cutting back the number of public bodies and their staffing.
Taxpayer-funded spending in Northern Ireland is running at 29% higher than the UK average, and Hain is keen to get better value for money from the province's £8.5bn budget.
'No specific funding stream of programmes is exempt,' he said, 'because if we do not radically reassess our spending priorities and ensure we are making the best use of taxpayers' money, then we will lose their trust to spend it on their behalf'.
The education review is likely to conclude that the current structure of schools provision in Northern Ireland is both sectarian and inefficient.
At present, even areas with low populations have both state – mainly Protestant – and Catholic schools, despite this often leading to very low school rolls.
At present, there are almost 50,000 spare school places in Northern Ireland and this will rise to 80,000 by 2015.
There is also to be a review of the cost-effectiveness of cross-border bodies that are run on behalf of the Irish Republic and Northern Ireland governments.
PFfeb2006
