Mood in No 10 said to be angry and despondent

Westminster reaction: The British Prime Minister, Mr Tony Blair, gave his full backing to the PSNI Chief Constable, Mr Hugh …

Westminster reaction: The British Prime Minister, Mr Tony Blair, gave his full backing to the PSNI Chief Constable, Mr Hugh Orde, yesterday as he prepared to face a chorus of demands for political sanctions against Sinn Féin.

The DUP leader, the Rev Ian Paisley, will meet Mr Blair in Downing Street early next week to press for the creation of a power-sharing government at Stormont without Sinn Féin, following Mr Orde's conclusion that the IRA was responsible for the Northern Bank robbery.

And the Northern Ireland Secretary, Mr Paul Murphy, will face Conservative and Unionist demands for the withdrawal of Sinn Féin facilities at Westminster when he makes a statement to MPs about the robbery, and the political fallout, on Tuesday.

The call for a Commons statement came from Conservative spokesman Mr David Lidington, who also asked if information now available to ministers and the police about the bank robbery would justify recalling to prison any persons released on licence under the Northern Ireland (Sentences) Act passed as part of the Belfast Agreement.

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In a letter to Mr Murphy, who is due to return to Belfast from America on Monday, Mr Lidington also signalled a tough new approach to the existing government agenda for the resumption of devolved government at Stormont.

He wrote: "Ministers have repeatedly said that Sinn Féin and the Provisional IRA are 'inextricably linked', a verdict supported by the reports of the Independent Monitoring Commission (IMC).

If PIRA was responsible for the bank robbery on 20 December, senior members of Sinn Féin must have known about or even authorised the crime."

Mr Lidington continued: "I hope you agree with me that any political party inextricably linked to an active and organised criminal gang is unacceptable in government in Northern Ireland.

"Nor could I support the devolution of policing or criminal justice to a devolved Executive unless all parties in that Executive had committed themselves unreservedly, in both word and deed, to support rather than undermine the police and the rule of law."

As Downing Street confirmed that the robbery and Mr Orde's statement would be referred to the IMC, Mr Murphy - speaking in America - insisted this was not the end of the political process, while conceding the two governments would not now see devolution restored before the British general election.

However, the mood in Number 10 was said to be angry and despondent.

With Mr Murphy due to meet the Minister for Foreign Affairs, Mr Dermot Ahern, next week, Downing Street confirmed that Mr Blair will meet the Taoiseach, Mr Ahern, when the Taoiseach returns from China.