Ulster Unionist peers in the House of Lords last night failed to have the RUC's royal prefix retained in the new name of the police service for Northern Ireland.
An amendment to the Police (Northern Ireland) Bill for a joint name, "The Royal Ulster Constabulary - Police Service of Northern Ireland", for the new force was rejected by 198 votes to 99 during the Bill's Report Stage in the Lords. After the vote, the Conservatives decided not to move a similar amendment.
Proposing the Ulster Unionist amendment, the chairman of the Ulster Unionist Party, Lord Rogan, said dropping the royal prefix would not encourage more Catholics to join the RUC.
He said Catholics did not want to join the police service because they were being intimidated by "republican henchmen" and because community and church leaders had failed to encourage them to join.
Lord Rogan said a double-barrelled name would preserve continuity. Changing the name would increase unionist dissatisfaction with the implementation of the Belfast Agreement.
However, Lord Falconer of Thoroton, for the government, said the amendment would not provide "cohesion and unity and, therefore, effectiveness of the police service". The new name for the force, the Police Service for Northern Ireland, incorporating the RUC title on the so-called title deeds of the Bill, represented "continuity and change".
For the conservatives, Lord Glentoran said the RUC had "worked extremely hard" to create an inclusive society while the IRA had contributed nothing to that end.
The Bill is expected to receive its Third Reading in the House of Lords next week before finally returning to the House of Commons. It is expected to become law before the end of this month.
Earlier, during Northern Ireland questions in the House of Commons, the Security Minister, Mr Adam Ingram, clashed with Conservatives over the party's proposal for a joint name for the police service, incorporating the royal title.
The shadow Northern secretary, Mr Andrew Mackay, said the proposed abolition of the name of the RUC was causing "huge hurt" among the families of murdered and injured officers and would not encourage recruitment of officers.
Mr Ingram described the name proposal as "a recipe for uncertainty, confusion and division".
Meanwhile, the Ulster Unionist leader, Mr David Trimble, who met the British Prime Minister, Mr Tony Blair, yesterday to discuss the political process, urged the government during Northern Ireland questions to raise with the US administration why the "Real IRA" had not been classified as a designated terrorist group.
The Northern Secretary, Mr Peter Mandelson, indicated representations would be made to the US administration on the issue.