Blair still hopeful despite growing DUP challenge to Paisley's stance

London reaction: British prime minister Tony Blair was pushing ahead with the Northern Ireland peace process last night despite…

London reaction:British prime minister Tony Blair was pushing ahead with the Northern Ireland peace process last night despite the first serious evidence of a challenge to the authority of DUP leader Ian Paisley.

Downing Street made clear that Mr Blair was confirmed in his judgment to allow the Stormont process to continue by a second, crucial statement by Dr Paisley yesterday confirming that - providing his terms on policing and other outstanding matters are met - he will accept nomination as first minister in a new Northern Ireland executive.

That reassurance followed an apparent revolt, later denied, which saw 12 DUP Assembly members - more than a third of Dr Paisley's Assembly party - explicitly reject Mr Blair's interpretation of Dr Paisley's opening statement at yesterday's first meeting of the transitional Assembly.

Led by MPs Nigel Dodds, William McCrea, David Simpson and Gregory Campbell, the 12 asserted: "Given the total lack of movement on behalf of Sinn Féin on the issue of support for the rule of law, the courts and the Police Service of Northern Ireland, nothing that we have said or done today can be taken by the government as an indication that they can imply shadow, designate or any other status to anyone in relation to the office of first and deputy first minister."

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Confusion about Dr Paisley's intentions at one stage seemed to threaten to derail the arrangements agreed by the British and Irish governments on Thursday.

However, the second, more explicit statement by the DUP leader, which was delivered outside the Stormont chamber, apparently provided the necessary reassurance for both governments and Sinn Féin.

With his Assembly party reportedly heading to a crisis meeting, Dr Paisley told the Press Association: "The prime minister has made his decision about my speech and how he interprets it. I have always said, as I said in the Assembly, what my intention will be if policing and all the other outstanding issues that are before us are settled. Everyone already knows that in those circumstances after they are delivered I would accept the first minister's nomination, provided the election results are favourable."

Mr Blair emphasised that restoration of devolved government also required Sinn Féin's "full support of policing".