Martin McGuinness

Gerry Adams and Martin McGuinness have issued a categorical denial that they are members of the IRA's army council.

Sinn Fein's president, chief negotiator McGuinness, and Irish parliamentarian Martin Ferris, had all been accused of membership by the Irish government's justice minister.

But in a joint statement issued on Monday, all three men said they had been angered by attempts to criminalise their party.

"We want to state categorically that we are not members of the IRA or its army council," they said.

"Our involvement in the peace process is as leaders of Sinn Fein and as elected representatives for West Belfast, Mid Ulster and Kerry North respectively.

"As part of this, in the past we have met with the army council to put propositions regarding the peace process."

Bank raid

Meanwhile, the British government is on Tuesday set to officially sanction Sinn Fein over the suspected involvement of the IRA in criminal activity.

Northern Ireland secretary Paul Murphy will give his response to the International Monitoring Commission's report on the Northern Bank raid to MPs.

The prime minister's official spokesman suggested that the government had accepted the view that financial penalties would be "puny" compared to the amount stolen but that disapproval needed to registered.

Murphy is under pressure to remove parliamentary perks from the party's two MPs Gerry Adams and Martin McGuinness.

Blair's spokesman said: "The time has now come for a choice to be made - either to be involved in politics, or criminality and paramilitary activity. You can't be involved in both."

Asked whether the British government shared the view that Sinn Fein leaders Martin McGuinness and Gerry Adams were members of the IRA army council, the spokesman replied: "What we have consistently said is that we believe the IRA and Sinn Fein are inextricably linked and that clearly has implications at leadership level as well."

Asked whether he thought Sinn Fein was committed to the democratic path, the spokesman replied: "We hope that they are and it's only if they are that there's any possibility of a deal involving republicans.

"There has to be a clear choice made between the paramilitary past and the criminal past and the democratic future.

"What we have always said is we will help republicans make that transition. The period of transition is over - the time for the choice is now."