NI talks: DUP rules out pre-Christmas Stormont deal

The Democratic Unionist Party (DUP) has ruled out the prospect of a deal to restore devolution in Northern Ireland before Christmas, the BBC understands.

It has been boycotting Stormont since early 2022 in protest against post-Brexit trade rules.

Talks about a £2.5bn financial offer from the government, should Stormont return, resumed at Hillsborough earlier.

But the Ulster Unionist Party (UUP) said they had been "disappointing".

The government was hoping an agreement on power-sharing could be reached before parliamentary recess on Tuesday and there was speculation a deal was close, after DUP leader Sir Jeffrey Donaldson said it was "approaching the time for a decision".

But, with the Secretary of State Chris Heaton-Harris not attending and the DUP ruling out a deal this side of Christmas, progress appears to have stalled.

It is understood the party's assembly members (MLAs) did not meet as they normally do on Mondays.

The DUP is the biggest party in Northern Ireland and the second biggest party at Stormont, behind Sinn Féin.

Power-sharing government cannot be restored in Northern Ireland without its participation as it requires both the largest and largest nationalist parties.

The DUP's Gordon Lyons said on Monday evening that negotiations are continuing and it is "critical that we get these right".

He added that "we are clearly not there yet and much more work needs to be done".

He said the party had made it clear from the start "that we are not calendar-led, we are condition-led".

"We don't care about short-term fixes," he said.

"We want to get this right for the long term, as well as dealing with those constitutional, trading and economic issues."

Sinn Féin assembly member Conor Murphy accused the DUP of a "lack of leadership" and said the party had "kicked it (a deal) down the road again for perhaps the seventh or eighth time this year".

He was not present at Monday's talks, but said it was "disgraceful", adding that "we're now into another year with this charade".

UUP assembly member Steve Aiken said the talks on Monday "didn't really achieve very much" and he expects there to be another set of meetings on Tuesday,

"For everybody in Northern Ireland, I hope we get some progress," he added.

"I think everybody understands where the landing zone is.

"Let's just get on with it and make it happen."

The talks are attended by the four parties eligible to form a power-sharing government if it is restored - Sinn Féin, the DUP, Alliance and the Ulster Unionist Party (UUP).

Speaking as he arrived at Hillsborough, Alliance Party deputy leader Stephen Farry said it was "another day of frustrations" for people in Northern Ireland.

Hillsborough Castle, complete with twinkly tree, had hoped to finally get rid of its guests who have overstayed their welcome.

The money talks there were supposed to end last Wednesday, but fine chance.

Everybody is back again this afternoon.

The government wanted this wrapped up and a Stormont executive by Friday at the latest.

But Sir Jeffrey Donaldson doesn't plan on granting their Christmas wish.

This weekend he sent a letter to his own helpers in the DUP, which basically said there's more to do, on both fronts. The money and the Irish Sea border.

Nothing ruled out, but no delivery date given.

Throughout, the DUP has said it won't be "calendar-led". Even, it seems, when the calendar reaches 25 December.

The money on offer includes a lump sum to settle public sector pay claims and a new "needs-based" funding formula for public services.

Transport staff, teachers and health care workers have all staged strikes in recent months over pay, causing widespread disruption across Northern Ireland.

Stormont departments say they cannot settle pay disputes because of budget pressures.

Party leaders in Northern Ireland have agreed that the current financial offer from the government is not enough.

Mr Heaton-Harris said he was prepared to go back to the prime minister and see what more is possible.

The DUP has been urged by other parties not to hold up a potential return to Stormont and to "seize the opportunity" to restore devolution.

On Saturday, DUP leader Sir Jeffrey Donaldson told party members that he would not be "distracted by hype" over a deal.

Writing in an email, he said the financial package did "not deal with our long-term challenges" and that he was hopeful the government would "advance on their offer on Monday".

Over the weekend, posters saying "stop DUP sellout" appeared in a number of locations across Northern Ireland.

One of the posters was erected outside Sir Jeffrey's constituency office in Lisburn but it has since been removed.

Meanwhile a body representing Northern Ireland's business community said it has written to Mr Heaton-Harris and party leaders urging them to continue working towards an agreement.

The NI Business Alliance is a partnership between the Conferation of British Industry (CBI) NI, the Centre for Competitiveness, the Institute of Directors NI and Northern Ireland Chamber of Commerce.

"The coming days are crucial," the alliance said in a statement.

"If a restored executive can act soon, the prize could not only be stabilising public services, but a genuine catalyst for growth which supports business, jobs and economic prosperity for the benefit of all."

The DUP pulled its first minister out of Stormont's power-sharing executive in February 2022 in protest over the Northern Ireland Protocol.

The protocol was introduced post-Brexit to prevent the need for goods checks along the border between Northern Ireland and Republic of Ireland, which is still an EU member state.

Earlier this year, the trade rules contained in the protocol were eased by the Windsor Framework - a new deal negotiated by Prime Minister Rishi Sunak with the EU.

The DUP has been in closed talks with the government for months over further changes it wants to the framework.

The party believes the current rules, which include additional checks on goods moving from Great Britain to Northern Ireland, are damaging to the economy and undermine Northern Ireland's place in the UK.

Last week, Mr Sunak said the government stood ready to legislate to "protect" Northern Ireland's place in the UK internal market.