Talks with DUP over trade border impasse are over – Heaton-Harris
Northern Ireland Secretary Chris Heaton-Harris also unveiled a £3.3bn financial package to stabilise NI’s finances.
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Your support makes all the difference.Northern Ireland Secretary Chris Heaton-Harris has said negotiations with the DUP over post-Brexit trading arrangements have concluded as he called for a decision to be made on the return of Stormont.
Mr Heaton-Harris also outlined a new £3.3 billion financial package offer for a returning Executive to stabilise Northern Ireland’s finances, which he said was a final offer.
The offer includes extra funding to tackle hospital waiting lists and for the PSNI to deal with the impact of a major data breach, and would result in a Stormont budget overspend being written off if a returning Executive implements a fiscal sustainability plan.
The minister hosted Northern Ireland political leaders at Hillsborough Castle on Tuesday.
It is disappointing that there will not be a new Executive up and running to take up this offer and deliver it for the people of Northern Ireland before Christmas
But DUP leader Sir Jeffrey Donaldson said he did not think the offer was enough to bring financial stability to Northern Ireland and added that talks over unionist concerns about trading arrangements would continue.
Sinn Fein president Mary-Lou McDonald said it was “bitterly disappointing” that other parties in Northern Ireland are continuing to wait for the DUP to make a decision.
Ireland’s deputy premier Micheal Martin has said the Irish Government would be meeting Mr Heaton-Harris this week to discuss next steps, describing the DUP boycott as a “denial of democracy”.
The unionist party previously signalled that there would be no deal to restore the Stormont institutions this side of Christmas.
The Government has been involved in separate talks processes with the DUP over the Windsor Framework and the four largest parties in the region about Northern Ireland’s budget crisis.
The powersharing institutions in Northern Ireland have been collapsed for almost two years.
Speaking after talks concluded, Mr Heaton-Harris said: “It is disappointing that there will not be a new Executive up and running to take up this offer and deliver it for the people of Northern Ireland before Christmas.
“However, this package is on the table and will remain there, available on day one of an incoming Northern Ireland Executive to take up.”
He added: “The UK Government has also held extensive talks with the Democratic Unionist Party (DUP) on the Windsor Framework over the last eight months.
“From our perspective, those talks, all the issues of substance, have reached a conclusion.”
Mr Heaton-Harris continued: “These financial talks have concluded and there is a financial package worth in excess of £3bn on the table should the Executive be restored.
“From our perspective the Windsor Framework talks, all issues of substance have effectively concluded, but we are always happy to answer concerns and questions on this.
“It is now the time for decisions to be made.”
But Sir Jeffrey said there had not yet been agreement on issues of concern around Northern Ireland trade with the rest of the UK.
He said: “In relation to the Windsor Framework, the Northern Ireland Protocol and the discussions we’ve been having with the UK Government, we are very clear, there is not yet agreement finalised on the issues of substance and we will continue to engage with the Government to get to the point where that agreement is reached.
“We are not for giving up, we want to get this right, it is important for the future of Northern Ireland within the United Kingdom that we secure the change that is required to restore our place within the United Kingdom and its internal market.”
On the financial package offered to restore Stormont, Sir Jeffrey said: “We will study the other aspects of the offer that has been presented by the Secretary of State, we will consider that.
“It remains our view that there is not yet a basis within that financial offer to deliver the financial stability that Northern Ireland needs in the years ahead.”
Sir Jeffrey later told the BBC that his party had a separate meeting with Mr Heaton-Harris after the roundtable with the parties, over the “outstanding issues in relation to the Windsor Framework”.
He said: “As far as we are concerned, we are clear the talking continues and that is evidenced by the fact that we will be engaging with the Government in the coming days and weeks on the substantive and outstanding issues, and we’re working towards getting an agreement.”
Sinn Fein leader Mrs McDonald said: “The work is done here, the British Government has presented a new financial offer.
“We’re very clear and have been from the get-go that the finances for the Executive, for the funding of the north, will be an ongoing battle a day with the Tory government, and we’ve also always believed and still believe that we’re in a much stronger position to make the argument for sustainable finances from the position of a strong Executive.
“The negotiation between the DUP and the British government on the Windsor Framework is over, it has concluded.
“Jeffrey Donaldson said a number of days ago that he and the DUP had reached a decision point. It is very, very regrettable that they have rowed back it seems from that position, that the decision has not been made.”
During the Hillsborough talks, the Government revealed its new financial offer after Northern Ireland parties had said a £2.5 billion offer made last week was not enough.
The £3.3 billion package includes:
– up to £584m for public sector pay claims as a non-repayable reserve claim
– a new Welsh-style needs-based funding formula set at 124% in the Barnett formula from 2024-25
– to cover backdating of the funding formula, a £1.125 billion stabilisation fund will be concentrated into two years
– A Stormont budget overspend of £559 million will be deferred for two years and then written off when a returning Executive publishes and implements a fiscal sustainability plan
– A dedicated fund of more than £600m for a transformation plan, with at least £150 million ringfenced for transformation projects
– an extra £34 million to tackle hospital waiting lists in Northern Ireland
– £15 million to the PSNI to deal with impacts of a major data breach
– an enhanced investment zone worth £150 million will be created
– Northern Ireland’s annual capital borrowing limit will be increased over five years, worth an extra £135 million by 2028/29.
Tanaiste Mr Martin said: “It’s very difficult to come to any conclusion as to why we don’t have the restoration of the Executive and institutions this week, because it seems to me … I’m not clear what’s left to negotiate in respect of those issues.”