Peter Hain, the Northern Ireland secretary, has challenged unionist and republican politicians to reach an agreement on reinstating the region's devolved assembly in the new year, implying that if they failed the elections planned for 2007 might have to be postponed.

In his end-of-year message, issued today, Mr Hain says: "It is essential that there is real political movement in 2006 if the assembly elections due to be held in 2007 are to have any meaning."