Renegotiating the Reinvestment and Reform Initiative (RRI):

In 2002 the Ulster Unionist Party and SDLP negotiated the Reinvestment and Reform Initiative (RRI) with the Treasury. The RRI allowed Northern Ireland to borrow money from the Treasury to finance infrastructure projects.

While this ability is welcome, the terms on which the borrowing facility is available have contributed to the massive rise in rates over the last few years.

The Treasury used the negotiating of the RRI, not only to make access to this funding dependent on the introduction of water charges, but also link access to borrowing to close the gap with the level of council tax in England and Wales.

This means the level of our rates are dependent on council tax in England and Wales. This has led to double digit increases - as high as 19% - in the level of our regional rate in order to allow us to borrow to fund our infrastructure needs.

We have consistently argued that the link between local council levels in England and Wales and our regional rate should be broken. There should be an incentive on politicians to save money through efficiencies, not an incentive to spend more.

Breaking the link with council tax is a key priority before the restoration of devolution. Otherwise, no Executive in Northern Ireland would have any real ability to control the level of local taxes in the province.

This will be a key issue in any financial package negotiated with the Treasury in the period after the election. We want to see an incoming Executive which has the ability to set its own regional rate, and to contest elections on this basis.

 
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