Secretary of State for Northern Ireland, John Reid has said that the suspension of the local institutions would allow "breathing space" for the parties in the province to resolve their differences.

In a speech to the Commons yesterday, Dr Reid said that the recent difficulties in Northern Ireland stemmed from a "loss of trust on both sides of the community". He acknowledged that the issues relating to a loss of confidence were complex, but the "heart of the recent political difficulties have been concerns about the commitment to exclusively democratic and non-violent means".

The government also restated its commitment to combat violence and to go "wherever the evidence leads".

The Minister referred to the trial of republicans in Colombia and the break-in at Castlereagh as reasons for a lack confidence in the power-sharing arrangements.

He added: "It would be naive for any of us to ignore the impact on political and public opinion of the charges brought against republicans, including members of Sinn Fein, as a result of the police operation on 4 October.

"Like me, the House will be particularly concerned about the position of prison officers and others, and their families, for whose assistance the police have now established a special unit. The Prison Service is working closely with the police and has established a helpline."

Dr Reid outlined a three-tiered approach to correcting the current impasse. He said that government would "move rapidly and decisively from the recent weeks of political uncertainty"; embark on a process of review of the Agreement; and bend every effort to find a basis on which to bring back the devolved institutions, and as quickly as possible.

Responding to the Northern Ireland Secretary's statement, UUP leader David Trimble said that Dr Reid had "funked it" in dealing with his party's concerns over Sinn Fein's alleged involvement in a Stormont 'spy ring'.

Mr Trimble also pressed Dr Reid over estimates in the press that, as a result of the security breach at Castlereagh Police Station, £30 million had been spent on relocating police officers.

He added: “The Secretary of State has to explain why he funked it, because in the view of the man in the street that is precisely what happened: the Secretary of State decided that he would sacrifice the political process for fear of what might happen to the cessation of military operations declared by the IRA.”

(GMcG)