- By Brendan Hughes
- BBC News NI political reporter
Image source, HOLLIE ADAMS/Reuters
Chris Heaton-Harris is expected to again meet leaders from the assembly’s largest parties
The Social Democratic and Labour Party (SDLP) has said it will not take part in a third day of talks on a £2.5bn financial package for Stormont.
Northern Ireland Secretary Chris Heaton-Harris is expected to again meet leaders on Wednesday.
The SDLP would not be entitled to join the next executive following last year’s assembly election.
The government offer, outlined on Monday, is dependent on reviving the power-sharing institutions.
But the parties have said the proposed funding is not enough.
Meanwhile, Foreign Secretary David Cameron is set to meet Tánaiste (Irish deputy prime minister) and Irish Foreign Affairs Minister Micheál Martin in London.
Northern Ireland’s devolved government collapsed in February 2022 after the Democratic Unionist Party (DUP) withdrew in protest against post-Brexit trading arrangements between the region and Great Britain.
The party has been seeking further legal assurances from Westminster of Northern Ireland’s place within the UK internal market.
Discussions on a financial package for Stormont began at Hillsborough Castle on Monday, with the Northern Ireland Office setting aside three days for meetings.
DUP assembly member Gordon Lyons said on Tuesday he did not believe the package on offer was “adequate to address the issues that we face”.
“We want to see Stormont back on a sustainable footing,” he added.
“That means the political issues, the constitutional issues, the economic issues need to be resolved.”
Sinn Féin assembly member Conor Murphy said the talks process “isn’t a real negotiation” and the package offered “falls short of what’s needed”.
Calling for the DUP to end its Stormont boycott, Mr Murphy said the best way to discuss a support package for public services was through “a working executive engaging with the British government”.
Plenty of talking but no sign of breakthrough
There is plenty of work going on behind the scenes, but hope for a breakthrough on the final day of these scheduled talks is looking very slim.
Northern Ireland Secretary Chris Heaton-Harris set aside three days for these discussions in the hope that pressure would pile on the DUP to act, but that doesn’t seem to have had the desired effect.
We do know that the UK government was keen to get this wrapped up before Parliament goes into recess on Tuesday for a break of three weeks.
If there is going to be legislation around this final package with the DUP then that is a complication.
Sinn Féin has already said that this process must be time-limited and the party has made clear they want a decision by the end of the talks.
But it certainly looks like that this whole process will run on and that means more talks could likely be on the horizon.
What is in the government’s offer?
The proposed financial package would include a lump sum to settle public sector pay claims and a new “needs-based” funding formula for public services.
It would also allow budget overspends at Stormont from last year and this year to be repaid over five years.
An executive would have to commit to raising rates – the property taxes paid by households and businesses – by at least 15%.
Image source, Getty Images
Stormont’s Department of Finance has previously said it is facing £580m of public sector pay pressures this year and it is understood the package would fully fund that.
The package would also include a four-year “stabilisation fund” worth £1.125bn.
The Alliance Party leader Naomi Long told BBC News NI’s Good Morning Ulster programme on Wednesday that while good progress had been made, “there are a number of things that still need looked at”, including backdating the fiscal floor.
Robbie Butler, of the Ulster Unionist Party, said it is achievable to have a government before Christmas if “we can give confidence of political stability”.
The SDLP’s Matthew O’Toole (left) says the party will not take part in Wednesday’s talks
Matthew O’Toole, of the SDLP, added it would be “inexcusable for this to drag on beyond Christmas”.
Irish Congress of Trade Unions (ICTU) President Justin McCamphill said the current public sector funding offer was a “quick fix” because the money “has only been offered for one year”.
“This is short-sighted because it’s going to be a recurring cost – whatever increase this year is going to have to be paid going forward as well,” he said.
How did we get here?
The DUP collapsed the Stormont executive in February 2022 in protest against Irish Sea trade barriers under the Northern Ireland Protocol, which was agreed in 2019 by the UK and European Union.
Unionists said the post-Brexit arrangement diminished Northern Ireland’s place within the UK internal market.
In February, the UK agreed a new deal with the EU called the Windsor Framework aimed at reducing checks on goods moving from Great Britain to Northern Ireland.
But the DUP said this did not go far enough and it has been in negotiations with the government for months aimed at securing further changes.
Governments to discuss cooperation
Meanwhile, Lord Cameron and Mr Martin will discuss “cooperation between the UK and Ireland following the agreement of the Windsor Framework”, the UK’s Foreign and Commonwealth Office said.
The UK and Irish government ministers are also expected to discuss the situations in Israel and Gaza and in Ukraine.
Mr Martin said it is “vital that we continue to strengthen the relationship between our two governments”.
Sen Michael McDowell, a former Tánaiste, told the BBC there is a “general expectation” in Westminster that the DUP will re-enter power sharing and that the financial package should be seen as a “substantial political gain”.
William Turner is a seasoned U.K. correspondent with a deep understanding of domestic affairs. With a passion for British politics and culture, he provides insightful analysis and comprehensive coverage of events within the United Kingdom.
