Molloy - Audit Report into borrowing highlights deep flaws
Sinn Féin Finance Spokesperson, Mid Ulster MLA Francie Molloy, former Chairperson
of the Assembly Finance and Personnel Committee has said that the Audit
Report into borrowing highlights deep flaws with the Reinvestment and Reform
Initiative that has exposed people here to an unnecessary debt burden that
will also reduce the fiscal flexibility of any incoming Executive.
Mr
Molloy said:
"The Audit report tells us that the departments,
particularly under direct rule, have mismanaged their budgets and drawn down
unnecessary loans from the British Exchequer that will saddle people here
with an unnecessary debt burden.
"When the RRI was launched Sinn
Féin warned that it would lead to increases in rates and the
introduction of other revenue raising streams such as the water charges.
Last year rates went up by 19% to cover this borrowing and now we discover
that some £200 million of public money was unspent while borrowing has
now risen to over £400 million.
"This report also reinforces
our concerns about a dependence on Public Private Partnerships and PFI,
particularly in relation to incurring substantial long term repayment
liability for projects that may become unviable.
"The upshot of
all of this is that people will be facing higher rates bills and any
incoming Executive will have less financial flexibility in setting its own
priorities. This is why Sinn Féin are determined to achieve a strong economic
package that can deliver sustained investment in infrastructure without
increasing the burden on local people.
"There is a growing
momentum behind the campaign for much greater local fiscal control including
on issues such as local tax varying powers and borrowing.
"This
whole mess also highlights the need for a return of local institutions and
real accountability. It exposes the reality behind the British governments
determination to impose water charges." ENDS