Cross border bodies 'face cuts'

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Two cross border bodies and the economic development agency, Invest NI, are among the first to be targeted as part of the NI Executive's programme of cutbacks.

They will take the brunt of the £11m cuts at the Department of Enterprise.

The executive's 11 departments have been told to impose combined cuts of almost £400m next year.

Invest NI will lose £6m with further cuts at Intertrade Ireland and Tourism Ireland.

It is believed the savings at Invest NI will mean a reduction in expenditure on land acquisition.

Intertrade Ireland will see a budget cut of £1.6m and at Tourism Ireland a £1m reduction is planned.

Both organisations are among the six cross border bodies set up following the signing of the Good Friday Agreement in 1998.

Invest NI said officials are currently examining what areas within the organisation will be hit.

"This will be managed by the re-prioritisation of capital expenditure projects, some of which will occur naturally as companies delay investment plans in the current economic climate," a spokesperson said.

BUDGET CUTS BY DEPARTMENT Agriculture: £9.7mCulture: £25.9mEducation: £73.7mEmployment & learning: £28.7mEnterprise: £11.2mEnvironment: £4.2mFinance: £6.2mHealth: £113.5mRegional development: £80.5mSocial development: £30.3mOFMDFM: £9.3m

This year Invest NI has a budget of £208m and receives the largest slice of the Department of Enterprise's budget.

The Department of Employment and Learning said it has yet to decide where it plans to make its £29m in savings.

"Our senior staff are still trying to come up with a blueprint as to where these cuts might take place," a spokesman said.

In percentage terms, the department most badly affected is Culture, Arts and Leisure which has been told it has to cut 25% or £20m off its capital investment budget alone.

Speaking on the BBC Radio Ulster last week the minister Nelson McCausland said he has yet to decide where the axe will fall.

"That's a matter that we will be discussing with the arms length bodies over the next number of weeks," he said.

"There was to be an uplift in the budgets of a number of the bodies so, although there have been cuts, sometimes a body can actually end up with more money than it had last year in spite of the cut but, nevertheless, it is disappointing.

"The reality is there is only a certain amount of money to go round and we hear the demands from health and education and there is a competition, therefore, of priorities. We will have to wait and see how it works out but we will endeavour to do the best we possibly can."