BUILDING A PROSPEROUS AND UNITED COMMUNITY HM GOVERNMENT Table of contents Foreword ..................................................................................... 3 1. Rebalancing the economy and building a shared future ........... 5 2. Unlocking projects to boost the Northern Ireland economy ... 13 3. Building greater links between the Government and Northern Ireland Executive to drive private sector growth ......... 18 4. Implementation of this agreement .......................................... 19 2 BUILDING A PROSPEROUS AND UNITED COMMUNITY Foreword The world leaders we look The First Minister and deputy forward to welcoming to First Minister’s proposals Fermanagh next week will see a include: society that has already made great strides forward. A programme to reduce and ultimately eliminate all We are in a new phase where we of the so-called ‘peace can build on the hard-won walls’ by 2023. political stability and strengthen 10,000 United Youth the foundations for lasting peace Programme cross- and prosperity for future community placements for generations. young people; Ten shared educational The Government and Executive campuses in five years; are committed to working and together to tackle the important Ten shared neighbourhood challenges of: developments. rebalancing the economy The measures we are agreeing to meet the challenges of today, subject to formal today’s global race for ratification by the Executive, investment and jobs; and complement this plan. We need tackling the long-term, the right economic strategy to entrenched divisions in promote a stronger private society. sector, and we need to build a more cohesive, shared society. Progress on both of these is vital This is a package that requires if we are to maximise Northern both the Government and Ireland’s potential. Executive to work imaginatively to help us move further towards The proposals in Together: a shared and prosperous society. Building a United Community, announced by the Executive’s We have agreed: leaders on 9 May, demonstrate a commitment to tackling division An investment plan that and building a shared future. confirms we are on course The Government welcomes the to deliver the commitment plan and will work with the to £18 billion of capital Executive to help take it forward. funding over the period 2005-2017; 3 £300 million investment Importantly, we have agreed a through enhanced capital potential mechanism for taking borrowing powers, and forward the devolution of Government top-ups to Corporation Tax if the PEACE IV and EU Government decides to devolve Structural Funding to these powers. support frontline projects; Next week, we will be To continue Northern showcasing to the world an Ireland’s Assisted Areas increasingly outward looking Status coverage in order to society, open for business, help the Executive provide focusing on the steps needed to the targeted support that succeed in a competitive global has helped to promote over economy, and tackling divisions 3,000 new private sector within the community. jobs in the last three months alone; This agreement is a symbol of our ambitious vision: a genuinely A new way forward on shared society that can fulfil its Enterprise Zones and economic potential and planning reform, as well as strengthen the foundations for initiatives to drive continued peace, stability and investment in prosperity for the future. infrastructure, promote new businesses and boost tourism. Rt. Hon. David Cameron MP Rt. Hon. Peter Robinson MLA Prime Minister First Minister of Northern Ireland Rt. Hon. Theresa Villiers MP Secretary of State for Northern Ireland Martin McGuinness MLA deputy First Minister 4 1. REBALANCING THE ECONOMY AND BUILDING A SHARED FUTURE Investment to build a shared future the economy and delivering a shared and support jobs future. 1.1. The Government and Executive 1.4 Capital borrowing: To support are clear that it is only by building a the Executive’s investment in this area, shared and cohesive society that a stable the Government has agreed to a and prosperous future can be secured temporary extension to the Executive’s for Northern Ireland. Moving towards a capital borrowing facility under the shared society is essential if Northern Reinvestment and Reform Initiative Ireland is to maximise its economic (RRI). potential in the global race for jobs and investment. The Government will make available up to an additional 1.2 The First Minister and deputy £50m in 2014-15 and in 2015-16. First Minister announced a substantial The additional borrowing will be new package of measures to build a used to help support specific shared future on 9th May. The package shared housing and education included: projects. A ten year programme to reduce This £100m additional and ultimately eliminate all borrowing power will be “peace walls”; conditional on the Executive 10,000 United Youth Programme demonstrating progress on the cross-community placements for implementation of this strategy young people; and demonstrating a clear link Ten shared educational campuses between specific projects and the in five years; and promotion of a shared society. Ten shared neighbourhood developments. 1.5 PEACE IV: The Government and Executive recognise the important 1.3 On 23rd May, the First Minister role PEACE funding has played in and deputy First Minister published supporting cross-community projects to their new ‘Together: Building a United promote reconciliation and in tackling Community’ strategy, setting out a inequalities and disadvantage. As a detailed framework for Executive result of the EU budget negotiations, action to promote a shared society. the PEACE Programme has now FM/dFM will publish shortly a detailed successfully secured €150 million plan for the delivery of the shared funding for a future PEACE IV. future projects outlined on 9th May. The Government and Executive have now The Government will provide agreed a package of additional measures an additional €50 million from to assist the Executive in rebalancing the UK Territorial Co-operation 5 budget to the PEACE IV Ireland’s overall allocation for programme, subject to the period 2014-2020 to around confirmation of the UK’s €457 million. European Territorial Co- operation allocation. Proportionately, the UK Government will be providing a The Executive will seek, where greater internal transfer of appropriate, to use this additional funding to Northern Ireland than funding to support the United any other part of the UK, Youth programme announced by reflecting the Government’s the First Minister and deputy recognition of the important First Minister on 9th May. The support that Structural Funds Executive will seek North-South could provide in promoting Ministerial Council agreement to enterprise and, in that way, ensuring that submissions to the support cross-community Special EU Programmes Body cohesion. put building a shared and integrated society at the heart of The Executive will maximise the our objectives for the PEACE opportunity provided by these IV programme. additional funds to drive competitiveness and growth, 1.6 Structural Fund allocation: EU whilst also using the funding as Structural Funds play an important role far as possible in a way that is in promoting competitiveness and consistent with the objectives set enterprise, and have the potential to out in the programme of work support cross-cutting programmes to envisaged in the Together: Building build a shared and cohesive society. The a United Community strategy. Government and Executive recognise the concern that the EU criteria for the Boosting growth allocation of Structural Funds for the period 2014-2020 would have led to a 1.7 The Government and Northern 43% reduction in funding for Northern Ireland Executive have taken forward a Ireland. constructive and positive programme of work examining the potential for The Government is committed devolving Corporation Tax powers to to revising the allocations of the Northern Ireland Assembly. Structural Funds envisaged by the EU criteria. We will ensure The Government will take that around a further €181 forward further work on million of additional funding will Corporation Tax devolution and be available for Northern make a final decision on the Ireland, subject to European devolution of these powers no Commission approval and the later than the Autumn Statement ongoing negotiations with the 2014. EU Parliament on the EU Budget. This will take Northern Following discussions between 6 the Prime Minister and the First devolution to the Welsh Assembly and Minister and deputy First the Government is currently Minister, the Government has considering these recommendations. explored the best means of taking forward legislation in the 1.10 The Government and Executive event of a positive decision to agree that the devolution of some devolve Corporation Tax further tax powers might have the powers. The Government’s view potential to enable local politicians to is that we would be able to respond in a more tailored way to the proceed using a stand-alone Bill social and economic challenges that to make the necessary legislative Northern Ireland faces. The change. Government and Executive have already agreed to devolve to the In the event that the Northern Ireland Assembly the power Government did decide to to set Air Passenger Duty on long-haul devolve the powers, we would flights, helping to preserve Northern introduce the stand-alone Bill in Ireland’s vital air link to the United the normal way with the