STORMONT Assembly members' pay will be reduced by more than £13,000 as they are not performing all their functions, Karen Bradley, the Northern Ireland Secretary, has announced.
The devolved legislature in Belfast has not sat since early last year in a row over identity issues like the Irish language, which has prevented the appointment of ministers.
Repeated negotiations convened by the British and Irish governments have failed to persuade former coalition partners the Democratic Unionists and Sinn Fein to reconcile their differences.
In a Commons statement, Mrs Bradley told MPs she had also decided not to call new Stormont elections and would bring forward legislation to allow civil servants to make decisions in the absence of ministers as public reforms had stalled.
She is to hold talks with the local political parties in the next few weeks about re-establishing formal power-sharing negotiations and has not ruled out appointing an external mediator to help break the deadlock.
"While Assembly members continue to perform valuable constituency functions, it is clear that during any such interim period they will not be performing the full range of their legislative functions,” the Secretary of State told MPs.
"So, in parallel, I will take the steps necessary to reduce Assembly members' salaries in line with the recommendations made by Trevor Reaney.
"The reduction will take effect in two stages, commencing in November - it would not reduce the allowance for staff as I do not think that MLAs' [Members of the Legislative Assembly] staff should suffer because of the politicians' failure to form an Executive."
Mrs Bradley's predecessor as Northern Ireland secretary, James Brokenshire, commissioned former Assembly chief executive Mr Reaney to examine the controversial issue of paying Assembly members.
He recommended the 27.5 per cent cut, a move that would take the standard salary rate of £49,500 down to £35,888 in two stages, beginning in November, with a further cut three months later.
Public services have suffered because no ministers are in place to make major decisions.
Controversial issues like provision of abortion or same-sex marriage have not been addressed in the absence of an Assembly.
Arlene Foster, the Democratic Unionist leader and former Stormont First Minister, said: "It is deeply frustrating and utterly careless that Sinn Fein has decided to block government for almost 600 days."
She added: "Ultimately, Northern Ireland needs a ministerial decision-making mechanism which respects democracy."
She and her Ulster Unionist counterpart Robin Swann welcomed the pay cut for Assembly members, a demand which gained widespread public support.
Explaining the need for a "stepped approach" staggering the pay reductions, Mr Reaney said the impact of any salary reduction on MLAs' personal circumstances had been acknowledged.
He said research showed Assembly members spent 50 to 60 per cent of their time on constituency work and the average working week could extend to up to 80 hours.
Mrs Bradley also addressed the issue of civil service decision-making.
She said: "I recognise that there is a need to provide reassurance and clarity to both the Northern Ireland Civil Service and the people of Northern Ireland on the mechanisms for the continued delivery of public services.
"So, the legislation I intend to introduce after the conference recess will also include provisions to give greater clarity and certainty to enable Northern Ireland departments to continue to take decisions in Northern Ireland in the public interest and to ensure the continued delivery of public services."
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