Sinn Fein MPs to lose perks over IRA raid

Four Sinn Fein MPs will be stripped of their Commons allowances as punishment for the IRA's £26million bank raid.

The Evening Standard has learned of a crossparty deal to take away £430,000 of taxpayers' money.

The money is claimed each year by Sinn Fein president Gerry Adams, chief negotiator Martin McGuinness, Michelle Gildernew and Pat Doherty.

The move comes amid anger at growing evidence that the IRA carried out the Northern Bank robbery.

A senior Cabinet source told the Evening Standard. "We are going to take away their allowances. There is an agreement between the major parties." A government source said Downing Street was fully supporting the move.

"This is a matter for the House but ministers believe it is something that should be looked carefully at," he said.

Tony Blair, meanwhile, is planning to step up the pressure on Sinn Fein and IRA leaders to "decide once and for all what they stand for".

The Prime Minister aims to make clear that the Republicans can either take part in democracy or retain their military wing - but not both.

"The argument now is simple," said a source. "The IRA has to stop its activities." Northern Ireland Secretary Paul Murphy is likely to signal the move to strip Sinn Fein of its allowances when he gives a Commons statement on efforts to rescue the peace process and punish Sinn Fein.

The intention is to symbolise the danger that Sinn Fein faces of losing its place in the political process.

Pressure on Mr Adams and Mr McGuinness increased when the Irish justice minister Michael McDowell named both as members of the IRA's ruling council.

Downing Street described Sinn Fein and the IRA as "inextricably linked" while the Irish government has made clear its anger about the robbery.