Prime Minister Tony Blair and Chancellor Gordon Brown have unveiled a range of financial measures aimed at boosting Northern Ireland's ailing infrastructure.

Visiting the province on Thursday 2 May, the Chancellor offered the Northern Ireland Executive the ability to borrow billions of pounds, which would be used to improve public services such as transport and the water service.

However, the total sum of money lent to the Executive will be ultimately dependent on the amount of revenue it can raise, which will almost certainly see a resulting rise in rates bills over the next few years.

A new limited company will be created to manage the investment money under the Office of First and Deputy First Minister, with a short-term investment package of £200 million available immediately. This sum includes £125 million borrowed from the Treasury.

Thursday's visit also confirms plans to transfer Government assets such as the Maze Prison and Crumlin Road Prison to the Executive for redevelopment, in addition to several army bases in County Londonderry and the Belfast region.

First Minister David Trimble and Deputy First Minister Mark Durkan welcomed the announcement, and political representatives from both sides have been quick to call upon the immediate utilisation of the investment package throughout the public sector.

Sinn Fein MLA for Mid Ulster, Francie Molloy, stressed that the package should be used to benefit health, education and transport, and that the "lion's share" of the short-term measure should be translated into immediate money for hospitals, schools and transport.

Ulster Unionist representative for East Antrim, Ken Robinson, also called for the cash injection to be used in combating the current financial crisis facing schools.

He said: "The recent revelation that the North Eastern Education and Library Board is facing a £3 million shortfall in its finances simply magnifies a problem that is facing every primary and secondary school in this area.

He added that the Chancellor's announcement would help Education Minister Martin McGuinness "put some real money where his mouth is" to reveal a "real and sustained improvement in the quality of education we can provide for all our children."

(CL)