The DUP says it is not prepared to move forward with inter-party talks until a decision is made on an inquiry into parades in north Belfast.

Northern Ireland Secretary Theresa Villiers announced plans for fresh talks yesterday.

The talks will focus on flags, parades and the past, and will involve both the British and Irish governments.

Jeffrey Donaldson of the the DUP said Ms Villiers needed to respond first to unionist proposals on parading.

It is another attempt to resolve so-called legacy issues of 'flags, parades and the past', but the economy is also playing a major role in setting the agenda for talks.

The Stormont Assembly has so far failed to agree welfare reforms, risking a cut of stg£1bn in their annual budget from Westminster.

Northern Ireland currently gets a subsidy of between stg£10bn and stg£11bn a year, and it has been suggested a shortfall would require a 4% cut across government departments. 

Belfast-based journalist Alan Murray toild Newstalk Breakfast earlier that this is First Minister Peter Robinson's initiative to try and resolve the impasse at Stormont:

He also explained that this is new territory for David Cameron and Enda Kenny as UK and Irish leaders:

Northern Secretary Theresa Villiers has said all parties need to work together to "lift the blockages which are now preventing the devolved executive from delivering the efficient and effective government that the people of Northern Ireland want and deserve".