To ask the Minister of Finance to outline what engagement she has had with Treasury to ensure Northern Ireland is funded according to need.

Dr Archibald (The Minister of Finance)

With the Speaker's permission, I will answer questions 1 and 7 together. I have written to the Chief Secretary to the Treasury setting out my significant concerns in relation to elements of the financial package, including the stipulations on revenue raising. I am meeting the Chief Secretary to the Treasury tomorrow, when I will be pressing for a substantive engagement on how we develop and implement a new fiscal framework. I view that very much as the start of the engagement with Treasury on these matters. The immediate priority is for the British Government to put in place a fair needs-based fiscal floor with an appropriate baseline that recognises our underfunding for the start of the next spending review. It is essential that the right level of funding is provided by Treasury to ensure that we have a sustainable foundation for our public finances going forward.

Mr O'Toole

Minister, Executive Ministers have said various contradictory things about revenue raising, some in print and some verbally. As a constructive Opposition, we have said that we do not think that it would be appropriate to impose punishing new rises on the people of Northern Ireland this year. The Executive will meet this week to discuss the regional rate rise. Can the Minister confirm whether she will be recommending an above- or below-inflation rise in the regional rate?

Dr Archibald

As the Member will know, we have quite a tight time frame within which we need to set the rate to ensure that rates bills go out for the beginning of April. Hopefully, I will discuss with Executive colleagues this week the rate for the incoming financial year. It would not be appropriate for me to have those discussions in advance of having them with Executive colleagues.

Dr Archibald

I am still awaiting clarity from Treasury as to what funding has been re-profiled, so I will raise that with the Chief Secretary to the Treasury tomorrow. I share the concerns that the Education Minister has set out. These are important projects. As the Member will know, no Executive parties had anything to do with the re-profiling of the money, but obviously we will have to now deal with the outworkings of whatever comes next.

Mr Kearney

Minister, there is a widely shared view that one effect of Tory economic policy towards the North over the past 14 years has been to turn this region into an economic backwater. Do you agree that the transfer of maximum fiscal powers is essential to economic growth and stability here, and will you press that case at your meeting in London tomorrow and going forward?

Dr Archibald

I think that we all share the view that a decade of Tory austerity has done huge damage to our public services, and I certainly agree that it is vital that we have all the fiscal levers that we can at our disposal. That is why we included additional fiscal powers in the joint Executive letter that was sent to the British Government on 4 February. On fiscal powers, the Member will know that my predecessor, Conor Murphy, had set up the Fiscal Commission to look at the devolution of additional powers. Subsequently, the report of the Fiscal Commission went out for consultation. I will consider the Fiscal Commission's recommendations across a full range of taxes and will then bring proposals to the Executive on additional fiscal powers that we might seek. The fiscal framework is something that I will be raising with Treasury.