The Blair government has heavily defeated unionist and Conservative proposals to extend the range of financial penalties against Sinn Féin arising from the determination of IRA responsibility for the Northern Bank robbery.
In the Commons yesterday MPs approved the government motion withdrawing parliamentary allowances worth some £440,000 from Sinn Féin's four MPs for one year.
However the government defeated Conservative and unionist amendments seeking to remove that time limit while extending the sanction to include the withdrawal of all Westminster offices and facilities.
The government also defeated a second proposal calling on Northern Secretary Paul Murphy to make necessary arrangements to financially sanction Sinn Féin in respect of salaries and allowances in the Northern Ireland Assembly, the European Parliament and local government by 357 votes to 171.
Leader of the Commons Peter Hain insisted the government motion was a just and proportionate response expressing "the profound disapproval of this House for the activities of the Provisional IRA and the responsibility which Sinn Féin shares for these activities in the estimation of the Independent Monitoring Commission".
Sinn Féin MLA Conor Murphy travelled to London to denounce the decision, which he described "as predictable as it is undemocratic".
However Conservative spokesman David Lidington insisted: "The government did not go far enough." And the SDLP's Seamus Mallon launched a withering attack on Sinn Féin, saying its abstentionist principle had been demeaned by its willingness to accept the Westminster allowances.
Mr Mallon also criticised the two governments for their conduct of the process of negotiation, which he said had "diminished the Good Friday agreement and its chances of success".
The retiring Newry and Armagh MP abstained in the votes because he believed the proposed sanctions contributed to the grievance culture on which republicans appeared to thrive.
He said if governments had wanted to devise a template to destroy the entire centre ground of politics in Northern Ireland, it could be found in the approach to the process of negotiation.