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Stormont faces £250m penalty in pensions split Stormont faces £262m penalty in pensions split
(about 7 hours later)
By Martina Purdy BBC NI Political CorrespondentBy Martina Purdy BBC NI Political Correspondent
Stormont faces a £250m penalty after the executive split on how to deal with the reform of public sector pensions, the finance minister has warned. The finance minister Sammy Wilson has told the Assembly that the cost of delaying pension reform legislation for a year totals £262m.
Sammy Wilson is due to make a statement after nationalist ministers refused to agree to cost-saving measures being passed at Westminster. Stormont faces a penalty after the executive split on how to deal with the reform of public sector pensions.
Mr Wilson said this sum could be equal to 8,000 full-time nurses.
He said the best way forward was speedy legislation at Stormont to minimise the financial penalty and meet the deadline for reform of April 2015.
Mr Wilson said he was disappointed that his Executive colleagues had not accepted his recommendation that the best way to proceed and avoid delay is to give Westminster the consent to legislate the issue on behalf of Northern Ireland public sector workers.
Career average
The cost of delay, he said, is more than the entire budget of the department of trade, enterprise and industry.
Last week, Mr Wilson told the executive the reforms needed to be passed on a UK-wide basis.Last week, Mr Wilson told the executive the reforms needed to be passed on a UK-wide basis.
He said this was to avoid breaking parity and incurring penalties. He said this was to avoid breaking parity with the rest of the UK and incurring penalties.
The reforms include cost savings of 7% and would see public sector workers collecting pensions based on career average rather than final salary.The reforms include cost savings of 7% and would see public sector workers collecting pensions based on career average rather than final salary.
Following contacts with Danny Alexander, Chief Secretary to the Treasury, Mr Wilson recommended that the executive agree to let Westminster take the lead and include Northern Ireland in its legislation which is already before Parliament.Following contacts with Danny Alexander, Chief Secretary to the Treasury, Mr Wilson recommended that the executive agree to let Westminster take the lead and include Northern Ireland in its legislation which is already before Parliament.
But nationalist ministers refused to agree that there was not time for separate legislation at the assembly to allow MLAs to scrutinise the reform.But nationalist ministers refused to agree that there was not time for separate legislation at the assembly to allow MLAs to scrutinise the reform.
Primary legislation It is understood Mr Wilson warned that having the primary legislation go to the assembly rather than Westminster would mean a delay until January 2016 and a bill that the executive can ill-afford to pay.
It is understood Mr Wilson warned that having the primary legislation go to the assembly rather than Westminster would mean a delay until January 2016 and a bill of £250m which the executive can ill-afford to pay.
The SDLP minister Alex Attwood refused to agree to giving Westminster consent to legislate.The SDLP minister Alex Attwood refused to agree to giving Westminster consent to legislate.
Sinn Fein ministers then asked for and received an adjournment of last week's executive meeting.Sinn Fein ministers then asked for and received an adjournment of last week's executive meeting.
Sources say this prompted a quip from the First Minister, Peter Robinson, about the SDLP setting policy for Sinn Fein - echoing comments he made in a speech last month.Sources say this prompted a quip from the First Minister, Peter Robinson, about the SDLP setting policy for Sinn Fein - echoing comments he made in a speech last month.
But a Sinn Fein source insisted that both Martin McGuinness and John O'Dowd had made clear their opposition to Mr Wilson's proposals before Mr Attwood objected at the executive table.But a Sinn Fein source insisted that both Martin McGuinness and John O'Dowd had made clear their opposition to Mr Wilson's proposals before Mr Attwood objected at the executive table.
The source also added that Sinn Fein had been consistent on this issue before the finance minister brought it to the executive.The source also added that Sinn Fein had been consistent on this issue before the finance minister brought it to the executive.
After the adjournment, a vote was taken in which a majority of ministers backed Mr Wilson. These included unionist ministers along with Alliance.After the adjournment, a vote was taken in which a majority of ministers backed Mr Wilson. These included unionist ministers along with Alliance.
Consent motion
However, nationalist ministers blocked his proposal, by insisting the vote be taken on a cross-community basis.However, nationalist ministers blocked his proposal, by insisting the vote be taken on a cross-community basis.
The finance minister is now expected to make a statement to the assembly on the issue on Monday.
The first minister was asked about the issue on the Sunday Politics and suggested the disagreement was on the technical way forward rather than the content of the reform which had been "reluctantly agreed."
Mr Robinson said it was a choice between assembly legislation and a legislative consent motion to allow the primary law to be passed at Westminster.
He added: "I think we know the full consequences if we were to breach parity in terms of pensions."