British Prime Minister Tony Blair today threatened to cancel elections to a new Northern Ireland Assembly if Sinn Féin and the DUP do not resolve their row over policing.
Mr Blair warned Democratic Unionist leader the Rev Ian Paisley and Sinn Féin leader Gerry Adams to end their stand-off and clear the way for a poll on March 7th.
Senior Sinn Féin officers are due to meet next Tuesday to decide if they could press ahead with an ard comhairle to consider supporting the Police Service of Northern Ireland for the first time in their history.
The party had planned to call a party conference this month but then insisted the move was in doubt because Mr Paisley had not responded positively.
The DUP leader issued another uncompromising statement today, insisting there would be no yielding on his party's requirement for Sinn Féin to support the police, the courts and the rule of law first before a power sharing government could be formed.
Even though the row between the parties threatened the Governments' timetable for power sharing by March 26th, Mr Blair insisted it was still possible to transfer policing and justice powers from Westminster to Stormont by May 2008 if Sinn Fein signed up to supporting the police and the DUP delivered on power sharing.
But he warned: "It is only on this basis and with this clarity that we can proceed to an election. "I am confident that both parties want to see progress and will honour their commitments.
"But there is no point in proceeding unless there is such clarity." However Mr Paisley insisted the onus was on Sinn Fein to move first.
"The time for action from Sinn Féin is now," the North Antrim MP said. "If we are to see further political developments then it must be in the context of full and final delivery from republicans. On this there will be no weakening.
"We have remained steadfast on the need to achieve full delivery if full confidence is to be built then it is up to Sinn Féin to match their words with deeds."
In a bid to advance the process, Mr Blair today gave his assessment of what was needed from Sinn Féin and the DUP if policing and justice powers were to be devolved to Stormont by May 2008.
However while both parties welcomed his assessment, it was unclear whether this would be enough to Sinn Féin concerns about the DUP.
Mr Adams said: "The ard chomhairle will obviously have to judge whether or not the DUP's response today amounts to a positive acceptance of what Mr Blair has said.
"Let the dust settle on this. "However, the officer board of our party will meet next Tuesday to look at all of this."
Mr Blair and Taoiseach Bertie Ahern discussed the latest block to political progress in a telephone call this morning.
"The Taoiseach said it was essential to find a way out of the current impasse," said a spokesman.
He added: "He said it was important that parties understood one another's position so that the process can move forward on an assured basis.
"The Taoiseach said he agreed with the Prime Minister that it was only on the basis of clarity that we can proceed with an election."
Even though the DUP and Sinn Féin were less than sure that the crisis was any closer to resolution, the Northern Ireland Office put a positive gloss on the two parties' response to Mr Blair.
Four MPs — Nigel Dodds, Gregory Campbell, the Rev William McCrea and David Simpson — as well as Lord Morrow of Clogher Valley and MEP Jim Allister all issued hard hitting statements criticising the Mr Blair.
Mr Dodds accused the Prime Minister of being vague and silent on key details such as what role or influence Sinn Fein would have over a justice department.
"The proper response by Tony Blair to the continued foot dragging of Sinn Féin is to tell them to go away, get on with it and come back when they have delivered."
SDLP leader Mark Durkan said while the tone of the Prime Minister's statement was welcome, it hadn't moved things on as much as it should.
"The statement should have set clear tests for the DUP and Sinn Féin," the Foyle MP said.
"Instead, both of these parties can pretend that they are living up to what the Prime Minister has demanded, when in reality they are trying simply to pin the blame on each other."
Ulster Unionist leader Sir Reg Empey was not as convinced as the Prime Minister that the DUP and Sinn Féin were committed to the March 26th deadline for devolved government.
"I am not convinced that that is in fact what the party believe but that is what Tony Blair believes they believe and that in itself is a problem," the East Belfast MLA said.