Northern Secretary John Reid has declared that the UDA, UFF and LVF ceasefires are no longer intact. "They have systematically breached their ceasefire, and the patience of the people of Northern Ireland has run out," said Dr Reid.
Dr Reid said the UDA and LVF had showed contempt for the people of Northern Ireland, for peace and democracy. "They seem determined to spurn the opportunity given to them by the people to make the transition from violence to democracy," he said.
Dr Reid said that he could not pretend his decision would change their behaviour. He warned: "They may lash out and flaunt their immorality and their contempt for the law. But there is a limit to society's tolerance and that limit has now been reached."
The announcement was welcomed by Sinn Féin and the SDLP, but the UDA's political wing warned of a backlash.
It was believed that Dr Reid was about to make that announcement two weeks ago, but decided against the move a the last minute. He effectively said that he was giving the Loyalist groups one last chance to prove their ceasefires were holding.
It is thought that last night's serious rioting on the UDA-controlled lower Shankill Road area in Belfast, and the murder of journalist Martin O'Hagan have now persuaded the Northern Secretary to move on the issue.
The Taoiseach has said that he hopes tonight's declaration on the Loyalist ceasefires will force the leaders of the organisations involved to realise that they are not going to make progress by street violence.
Bertie Ahern said that, while the Secretary of State's decision was disappointing, it would not have been made without evidence from the ground.
Mr Ahern said he hoped the decision would not affect the peace process, and especially the possibility of decommissioning of IRA weapons.
He said there had been a summer of pipe bombs and other activities which put peoples lives in jeopardy, as well as a number of murders, and that the Secretary of State clearly felt that a substantial amount of people were involved.
Mr Ahern said that he hoped the leadership of the organisations would now see that they will not achieve anything by these means, but only by working the Good Friday Agreement.
The Minister for Foreign Affairs said that he regretted that the actions taken by the UDA, UFF and LVF have compelled the Northern Secretary to take this course of action. Brian Cowen said: "I know that Dr Reid has reached this decision only with the greatest of reluctance and on the basis of a detailed assessment from the Chief Constable."
The Labour Party leader said he was disappointed but not surprised by the decision. Ruairi Quinn said that the groups had turned their backs on the peace process through their actions. He also said that a significant move by the IRA on arms decommissioning would greatly assist the peace process.