Secretary of State Paul Murphy has told MPs that the Provisional IRA’s “continued involvement in criminal activity” remained the main obstacle to the restoration of an inclusive executive in Northern Ireland.

Speaking on Wednesday during Northern Ireland Questions in the House of Commons, Mr Murphy said that he would be keeping in contact with the Irish Government about moving the current process forward and that this position would be reviewed at the next British-Irish Inter-Governmental Conference.

“The Government’s ultimate goal remains the restoration of an inclusive power-sharing executive in Northern Ireland,” Mr Murphy said. “However both we and the Irish Government are clear that the main obstacle to achieving this is the Provisional IRA’s continued involvement in criminal activity.”

Meanwhile, DUP leader Ian Paisley has said that the leaders of Republicanism had lied about recent events including the Northern Bank robbery and "maligned" their accusers.

The North Antrim MP said: "The people of Northern Ireland are sick of these insults.

“The time has come for this Government to set its own affairs in order and say there is no place in a democracy for armed terrorists and for their campaign of crime and their campaign against the decent citizens of Northern Ireland."

Referring to claims by the Irish Justice Minister that Gerry Adams and Martin McGuinness are members of the seven-strong "Army Council" that controls the IRA, Dr Paisley added: "The House of Commons should rid themselves completely of those who are in the IRA or any other terrorist organisation from membership.

“There can be no hiding place for those involved in terrorism and criminality. It is time the Government moved swiftly to signal that Sinn Fein/IRA is nothing short of a collection of terrorists and gangsters who have rejected the democratic path. Those who attempted to buy Sinn Fein/IRA with concessions have been proved to be completely wrong.”

Yesterday, the Government announced it was to hit Sinn Fein with economic sanctions following an IMC report which claimed senior members of the party were involved in authorising the £26.5 million Northern Bank raid, along with other robberies.

The decision will see a one-year extension to existing sanctions that deprive Sinn Fein of £400,000 per year in expenses.

(MB/SP)