AQO 2179/17-22 Oral question to the Minister of Finance
To ask the Minister of Finance for his assessment of the cost of division on public finances.
Asked by Andrew Muir MLA on 27 May 2021
- Answered
- Oral
- Answered in the Chamber
- Tabled
- 27 May 2021
- Answer due by
- 8 June 2021
- Answered
- 8 June 202112 days after tabling
- Department
- Department of Finance
- Priority question
- No
Answer
Answered in the Assembly Chamber on 8 June 2021. Extract from the Official Report (Hansard), including any supplementary questions:
Mr Murphy
A report by Deloitte, in 2007, estimated the cost of division at £1·5 billion. In 2016, the Ulster University Economic Policy Centre estimated the cost of division at a lower figure, between £403 million and £833 million. The report outlined the significant complexity in the cost of delivering services in the North, costs that cannot be solely attributed to the context of a divided society. For example, delivering services in such a small region means that we do not benefit from economies of scale. The report also found that while, on average, the cost of public service provision tends to be higher than in Britain, across most areas, the costs here typically fall within the range of costs identified in other regions. The one exception to that is the cost of policing.
Mr Muir
I thank the Minister for his response. As the Minister is aware, during the multitude of Budget debates, it is often mentioned that we need to provide much more finance to deal with our waiting list crisis and for other services, and that we need to consider revenue raising. Does the Minister not agree that none of those arguments will carry any weight or credibility until we are prepared to look at our own finances and tackle the cost of division in Northern Ireland?
Mr Murphy
As I have said, it is not a straightforward issue. There is a complexity in determining what can actually be attributed to the cost of division. Of course, one of the ways that we can deal with that is to deal with the division itself: to try to reduce the divisions in society and the policing costs that are associated with it, which are significantly higher here than in other areas, and encourage the reconciliation process that is necessary. We have an ambition to try to reduce that, but it is an ambition for society not just for the public purse, albeit it has that knock-on effect on the public purse. Obviously, we strive to do that as best we can. The Executive Office leads on some of these reconciliation measures. We have been challenged, this year, in providing the level of support that it wanted to go into those programmes and projects. Nonetheless, it is incumbent on all of us to try to heal the divisions in society, promote reconciliation and, thereby, reduce the costs of sustaining division.
Mr Deputy Speaker (Mr McGlone)
That ends the period for listed questions. We now move to 15 minutes of topical questions.