26 September 2023

NORTHERN IRELAND: Official set to take charge of spending

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If Northern Ireland’s power-sharing Government is not restored by the end of next month, all future spending decisions are to be made by the senior Public Servant at the Department of Finance, Neil Gibson, journalists have been told.

Minister for Finance, Conor Murphy said he would no longer have the legal authority to exercise those powers after 31 July.

Until then, Departments would be able to continue spending because a Budget Bill passed the Assembly before last month’s election and the current impasse.

Hopes are fading that the Democratic Unionist Party will agree to form an Executive with Sinn Féin before the Assembly’s summer recess, which begins on 2 July.

Mr Murphy said the lack of an Executive meant there was significant funding which could not be allocated in 2022-23.

“The Budget Bill will allow Departments to continue spending through the summer,” Mr Murphy said.

“This, on its own, may provide time for a returning Executive to agree a Budget and for another Budget Bill to be passed,” he said.

“If that is not the case, from 31 July the Permanent Secretary may approve the issue of cash and use of resources.”

However, Mr Murphy said this would not allow Departments to plan effectively, nor provide the additional resources that were needed.

Mr Gibson (pictured) is an economist who has held a number of senior roles across the private and public sectors, including a stint as Chief Irish Economist at the EY consultancy.

He was an external choice for the Permanent Secretary position.

Speaking after he joined the Public Service, then First Minister, Arlene Foster described his appointment as “truly great”.

“This is just what is needed — he is truly innovative, grounded in the reality of the Northern Ireland economy, yet aware of the enormous potential of this place,” Mrs Foster said at the time.

Belfast, 21 June 2022

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