The Ulster Unionist Party has welcomed the Treasury letter to David Davis which provides short-term reassurance to farmers, universities and business on EU funding.

However, Finance Spokesperson Philip Smith MLA has said that the letter also raises a series of questions and has called on the Northern Ireland Executive to seek immediate clarity on these from the Chief Secretary to the Treasury.

Mr Smith said:

“I welcome this statement from David Gauke which essentially confirms that EU funding will be maintained during the Brexit negotiation process which now looks like it could run up to the next European elections in 2019 or even beyond to the end of this EU budget in 2020.

“But there are potential implications from this announcement specifically relating to PEACE and INTERREG funding in Northern Ireland. The Finance Minister must urgently quantify the impact on funding and to identify how much budget is at risk of not being signed-off before the Autumn Statement. Mr Gauke stated in his letter that he is willing to work with stakeholders to put in place arrangements for projects signed-off after the Autumn Statement but only while we are still EU Members.

“The priority of the Executive, and specifically the Finance Minister, must now be to secure a commitment from the Treasury to fund the full PEACE and INTERREG Programmes.

“While the Treasury letter maintains the status quo for certain funding streams until Brexit, it does suggest that EU funding including that for agriculture will change once the UK leaves the EU. The Northern Ireland Executive must press now for the best deal for local farmers, businesses and universities due to our unique situation.

“This letter is an inauspicious start to any negotiation process. It does not instil confidence in the capability of the Executive parties to influence Westminster when major funding programmes appear to be left up in the air with no long term commitment. The Executive needs to up its game.”