Optimism North agreement can be reached by weekend

The British and Irish governments and Northern Ireland’s main parties were last night attempting to resolve two outstanding issues in order to achieve a comprehensive political deal by the weekend. Differences over welfare reform and how to deal with the legacy of the Troubles were preventing the parties finalising an agreement, senior talks sources said last night.

There was still a degree of optimism that a deal could be achieved before the weekend but there was also some apprehension that the hurdles yet to be surmounted could push the talks into next week.

Up to last night, a North-South Ministerial Council meeting to be held in Armagh tomorrow was still scheduled to go ahead.

Sinn Féin Deputy First Minister Martin McGuinness said his party had been seeking to get both governments to address the central issues of a workable budget and the need for full disclosure in dealing with the past.

“The British government is not honouring its agreement to provide relatives of victims with full disclosure on the actions of its agents, army and police during the conflict,” he said. Mr McGuinness also said the British government must “provide a workable budget for the Executive”.

Northern Secretary Theresa Villiers, it is understood, has been resisting demands for more finance to lighten the effects of welfare cuts. How to deal with the issue of ascertaining the truth behind unsolved Troubles killings is also proving difficult, the sources said.

Ms Villiers has acknowledged legacy issues “continue to be very sensitive”. Sources said the British government had “national security” concerns over what could be divulged in relation to killings involving its troops and the RUC.

Sinn Féin and the SDLP are pressing for commitments to ensure that in relation to controversial British state killings, that the British government does not exploit the national security defence to prevent information being released.

There is also concern among the three smaller parties that the DUP and Sinn Féin, the dominant parties in the Northern Executive, might seek to “carve up a deal” between themselves and the governments.

If there is an agreement, there is also the possibility that the Ulster Unionist Party, the SDLP or Alliance might refuse to endorse it. In such a scenario, the DUP and Sinn Féin would be still be in a position to sign off on an agreement.

SDLP leader Dr Alasdair McDonnell said he wanted to see a deal involving all the parties and Dublin and London.

“We will not respond positively to an ambush where we are presented with a take-it-or-leave-it deal that is presented to us sight unseen,” he said. “There are some indications that may be the intention of the DUP and Sinn Féin.”

UUP leader Mike Nesbitt said his party, the SDLP and Alliance were being left outs. "Anybody who thinks that this is still a negotiation between five parties and two governments at Stormont House is misinformed," he said. "It's now between the DUP and Sinn Féin, who are in a lockdown."