Reaction in North: Sinn Féin last night vowed to fight the British government over plans to impose financial sanctions on the party because of the continuing activities of the IRA.
The Sinn Féin chairman, Mr Mitchell McLaughlin, said the party would use every means at its disposal to fight, "in a political way", plans announced by the Northern Secretary, Mr Paul Murphy, to cut government funding to the party.
That announcement followed the publication of the first report of the Independent Monitoring Commission (IMC).
"We will take advice, technical and legal, and we will respond to it," Mr McLaughlin said. The move to penalise Sinn Féin would fail, just as previous efforts to exclude the party had, he said.
The Northern Secretary also said the Progressive Unionist Party (PUP) would suffer a cut in government funding. The IMC said the party had failed to exert maximum influence on the UVF and Red Hand Commandos to desist from illegal activity.
Mr David Ervine, the party's only elected member in the legislative assembly, was not available for comment last night.
Mr Billy Hutchinson, a former PUP legislative assembly member, said the party did not have control over every UVF member. "We will take responsibility for those things sanctioned by the UVF, not those that haven't been," he said.
The DUP deputy leader, Mr Peter Robinson, said the findings of the report on to the IRA clearly showed that "IRA/Sinn Féin are not fit for government".
He added it was now incumbent on other political parties, particularly the SDLP, to proceed with the political process without republicans.
The Ulster Unionist Party leader, Mr David Trimble, said he welcomed the fact that the IMC would have considered excluding Sinn Féin and the PUP from the legislative assembly had it been operating. He hoped future IMC reports would "tell the whole truth" about paramilitary activity.
"Is it not the case that the proceeds of these crimes fund certain political parties? Should not the Electoral Commission and the Assets Recovery Agency be doing much more to stop this?"
He added it was a weakness of the IMC that it could not sanction organisations that were not politically represented.
The SDLP leader, Mr Mark Durkan, said the IMC report showed that loyalists were responsible for most murders and violence. However, the IRA was also responsible for serious violence. The IRA, "Real IRA", UDA and UVF "are all up their necks in criminality".