Ulster Unionist Party Leader David Trimble has urged the UK Government to seize terrorist assets in Northern Ireland.

Speaking prior to reception engagement this evening in the Belgrave Hotel, Brighton on the fringe of the Labour Party Conference, Mr Trimble said: "I warmly welcome the Chancellor Gordon Brown's initiative to seize the Taliban regime's UK assets derived from money-laundering, reputed to amount to around £60m. However, it is essential for the Chancellor to focus on the source of terrorists' revenues, particularly racketeering, smuggling and the illicit drugs trade.

"Furthermore, the Treasury needs to review those of its policies which give rise to such illegal activities. The high rate of duties and taxes on fuel and tobacco, in particular, provide terrorists with huge incentives to operate black markets. Nowhere is this more evident than in Northern Ireland where the differentials in tax with the Republic are exploited by all the paramilitary organisations, loyalist and republican, so-called mainstream and so-called dissident.

"The loss to the Treasury of fuel-smuggling alone in Northern Ireland is between £200m and £300m per annum. A high proportion of this finds its way to various organisations and through them to fund a range of apparently legitimate activities. There is a clear need for a thorough investigation of all aspects of this and for effective action to put an end to racketeering.

Mr Trimble added that Gordon Brown and the Prime Minister could not have failed to noticed the coincidence between terrorism and the drugs trade. He said: “Afghanistan produces 70 per cent of the world's opiates such as heroin while Colombia - where the FARC prosecutes its campaign - is a major centre for cocaine trafficking.

“All Northern Ireland's paramilitaries profit from hard drugs. Terrorism thrives off drugs, internationally and at home in the UK, especially in Northern Ireland.”

While welcoming the Chancellor’s actions, Mr Trimble said they needed to be followed by a “concerted drive against terrorists and their means of support”. (SP)