The Secretary of State has brushed off criticism of the UK government over the Irish Republic stepping in to fund student nursing and midwifery places in Northern Ireland.
Chris Heaton-Harris it was "not a bad thing in general terms" to have healthcare workers trained at universities in the region.
He was responding after the DUP said the government should be "embarrassed" by the intervention and warned of "undermining" arguments for Northern Ireland remaining in the UK.
The Irish government plans to fund 250 student nursing and midwifery places for the 2023/24 academic year, addressing a shortfall resulting from budgetary problems north of the border.
Senior civil servants at Stormont, who are currently running public services in the absence of devolution, are facing a funding gap running into hundreds of millions of pounds this year.
Stormont's Department of Health had cut 300 student nursing places for the coming academic year as part of cost-cutting measures.
The €10million Irish government plan would create 200 undergraduate places for Republic of Ireland students and 50 places for Northern Ireland students in Queen's and Ulster universities.
Mr Heaton-Harris appeared supportive of the plans when asked on Wednesday about them and for his response to the DUP's criticisms.
He told reporters in Belfast: "Well, I'd like to think on something like this that the universities involved might well have consulted with the political parties well in advance to ensure that they were comfortable with it.
"And whilst I think I understand the point the DUP is making, having nurses trained in Northern Ireland is not a bad thing in general terms."
On Tuesday, DUP MLA Paul Givan said the Irish government plan "crystallises" his party's concerns over how Northern Ireland public services are funded from the UK Treasury under the Barnett formula.
He told the BBC's Nolan Show a funding arrangement is needed that "meets the needs of Northern Ireland".
He said: "That's why I say that the government should be embarrassed that the Republic of Ireland is putting money into the Northern Ireland university system to finance the training of students, because that should be a United Kingdom priority that they can deliver the nurses and the midwives that we need to deliver services in Northern Ireland, rather than a foreign jurisdiction providing the funding to deliver that kind of training capacity."
The Lagan Valley MLA said the Conservative government's approach is "entirely counterproductive".
"And they are undermining our arguments for Northern Ireland remaining within the United Kingdom when our public services aren't properly financed," he said.
The government has said Northern Ireland Executive public spending per person is about 20% higher than the equivalent UK Government spending in the rest of the UK.
Mr Heaton-Harris set Stormont's budget in the ongoing absence of a functioning Executive.
He wrote to Stormont officials this week asking for information about revenue-raising measures such as domestic water charges, drug prescription charges and tuition fees, which he says will improve the sustainability of Northern Ireland’s public finances.
DUP leader Sir Jeffrey Donaldson said if the move was designed to put pressure on his party to return to Stormont, it would not work.
The DUP is continuing to block the devolved institutions due to its concerns over Brexit's Northern Ireland Protocol and the Windsor Framework.
Mr Heaton-Harris has said he is still "waiting to hear" what further "safeguards" the DUP wants, but Sir Jeffrey said concerns have been "well aired" and he has made specific proposals to the government.
Read next:
- DUP: UK should be 'embarrassed' over Irish gov nursing student plan
Stormont bosses under pressure on revenue raising measures like tuition fees
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