UK attacks IRA and Sinn Fein over criminality

Britain said yesterday that hopes of a political settlement in Northern Ireland have been "very seriously damaged" by accusations of IRA criminality that have put Republican politicians on the defensive.

As a sign of London's disapproval, Northern Ireland Secretary Paul Murphy proposed halting the parliamentary allowances of Sinn Fein, the Irish Republican Army's political ally, and urged both to renounce violence.

Sinn Fein, the Irish Republican Army's political ally, has never been under so much pressure from both London and Dublin as the prospect of Belfast running its own affairs fades fast.

The linking of IRA guerillas to bank heists, murder cover-ups and money laundering has besmirched the Republican cause.

Now mounting allegations that Sinn Fein is also involved have dealt a body blow to hopes of restoring local government by feuding Protestants and Catholics in the British province.

Echoing the uncompromising line adopted by the Dublin government, Mr Murphy told parliament: "The actions of the Republican movement are letting down everyone in Northern Ireland, including Sinn Fein voters."

He ruled out excluding Sinn Fein from the already faltering political process but stressed: "Financial penalties of the kind I have described today may signify our strong disapproval of what has happened."

Mr Murphy, who warned that the chances of peace had been "very seriously damaged," said it was up to the Republican movement and Sinn Fein in particular to rebuild trust and confidence.

The Northern Ireland assembly was set up as part of a 1998 peace agreement which largely ended 30 years of sectarian violence but it collapsed over two years ago in a row over an alleged IRA spy ring. London now runs the province direct.

Protestant Unionists, who fervently want to maintain Northern Ireland's links with Britain, are deeply mistrustful of Sinn Fein whose goal is a united Ireland.

"We have to move on without them," said Democratic Unionist parliamentarian Nigel Dodds.

"All democratic parties should be allowed to get on with governing this place without being held up by gangsters," he added.