- Written by Jayne McCormack
- BBC News NI Political Correspondent
image source, Kelvin Boys/Press Eye
Chancellor Rishi Sunak poses for a photo with NI Secretary Chris Heaton-Harris and other Northern Ireland Executive ministers.
They met in what Taoist called “a very good encounter.”
They also met separately with political leaders, including Prime Minister Michelle O’Neill and Deputy First Minister Emma Little-Pengery.
Mr Sunak said the new deal would protect Northern Ireland’s place in the union.
He said the return of decentralized government was a reason for optimism.
Mr Varadkar was not interested in the issue of Irish unity, instead saying the return of parliament showed the Good Friday Agreement was working again.
Prime Minister Leo Varadkar met with Deputy First Minister Emma Littlepengelly and First Minister Michelle O’Neill at Stormont.
He said the new ministers were “keen to brief” and the Irish government was “coming to support”.
“Today is a good day,” Mr O’Neill said ahead of the first meeting of the Northern Ireland Executive, the cabinet body that directs policy and makes decisions.
She spoke of the parties in the Executive, namely her party Sinn Féin. Democratic Unionist Party (DUP). Ulster Unionist Party (UUP). And the Alliance was “committed to working together.”
Ms Little Pengelly echoed the first minister’s comments, saying she was “very conscious of the big issues that need to be addressed”.
What did Mr Sunak and the NI Cabinet discuss?
One of the key issues looming over ministers is how to fund Northern Ireland.
Executive ministers have written to Mr Sunak asking for a new funding model that provides “long-term sustainability”, while Mr O’Neill has previously said it is a priority for the executive .
Mr Sunak described the package as a “generous and fair settlement for Northern Ireland”.
image source, Oliver McVeigh
NI Secretary Chris Heaton-Harris, First Minister Michelle O’Neill, Deputy First Minister Emma Little-Pengery and Chancellor Rishi Sunak at Parliament House in Belfast.
Meanwhile, Northern Ireland Minister Chris Heaton-Harris told Good Morning Ulster that the Fiscal Council’s report shows Northern Ireland is adequately funded and calls for changes to funding. He said the numbers used by ministers were questionable.
He added that public servants “have done wrong things in the past.”
But both the First Minister and Deputy First Minister said this was an issue they had raised with Mr Sunak.
Mr O’Neill said the next cabinet had an “arm-length tray” and needed to take appropriate fiscal measures to address them.
Mr Little Pengelly said: “We want to make sure this executive has the right tools and sufficient resources to do what they need to do.”
“We are up to the challenge and have a very constructive working agreement in place to address these issues together.”
In this letter, the new executive effectively states that unless the fiscal policy announced before Christmas is amended, it is almost certain to cause a new financial crisis at Stormont.
Ministers therefore want to resume negotiations on key elements, especially the “fiscal floor”.
This was based on the decentralized funding model in Wales, which recognized that demographic differences made service delivery more costly in Wales than in England.
The Government has agreed to fund Wales at a level of 115% of that of England. In other words, for every £100 per person spent on public services in England, more than £115 per person should be paid in Wales.
The Government has accepted a similar model in Northern Ireland, setting per capita funding at 124% of England’s level.
Stormont ministers say this is too low and has not been the subject of any robust independent assessment or analysis.
They believe the starting point should be 127%, with the potential for further increases.
This difference may sound small, but over time it will require billions of pounds of additional funding.
DUP leader Sir Geoffrey Donaldson also said on Monday morning that he would speak to the Prime Minister about the issue and would be “unapologetic” in the discussion.
“Funding for Northern Ireland is below the level it needs,” Sir Jeffrey said. He is a member of Westminster and therefore does not hold a seat on Stormont City Council.
“The government needs to make a little more progress to get our country’s fiscal health back on track.”
What else did PM do in NI?
This is Rishi Sunak’s seventh visit to Northern Ireland since taking office, but his first visit with a fully functioning government in place.
He arrived on Sunday night and met volunteers and crew from the Air Ambulance Charity, as well as the families of those helped by the service.
On Monday morning, he and Secretary of State Chris Heaton-Harris were welcomed by Prime Minister Michelle O’Neill and Deputy First Minister Emma Little Pengelly at Stormont Castle.
While there, he also met Taoist Leo Varadkar.
They then visited Glengreig Comprehensive School in Hollywood, County Down, where they handed out healthy snacks to Year 2 pupils and had a Q&A with school principals in the library.
Chancellor Rishi Sunak visits Glencraig Primary School in Hollywood, County Down
How was electricity sharing restored in Northern Ireland?
The return to power-sharing came after months of negotiations involving the government and Northern Ireland’s largest union party, the DUP.
Britain withdrew from power-sharing in February 2022 in protest of the post-Brexit Northern Ireland trade deal agreed between the UK and the EU.
Last week, DUP leader Sir Geoffrey Donaldson announced that an agreement had been reached with Number 10 which meant there would be no “routine” checks on goods crossing from Great Britain to Northern Ireland.
On this basis, he said his party would return to power if Westminster passes legislation to implement further reforms.
The decision culminated in the restoration of power-sharing institutions on Saturday, two years after the DUP withdrew from the executive.
The move has been widely welcomed, with US President Joe Biden saying: “Governments that find ways to solve difficult problems together will create even greater opportunities for Northern Ireland.”
On Monday, former President Bill Clinton, who was in office when the Good Friday Agreement was signed in 1998, posted: “Congratulations to all party leadership on this important step.”