Shaun Woodward said 2007 had been a momentous year

In his New Year message, Mr Woodward said the government stood ready to devolve the remaining powers in May.

He said 2007 had been a momentous year and local people expected politicians to "finish the job".

"The people of Northern Ireland want peace for their children and to be at ease with their neighbours," he said.

"They want to concentrate on the things that really matter: their health and well-being, their prosperity, their future.

"And they expect the political parties to finish the job of devolution and devolve policing and justice powers to the assembly."

He said that it was for the parties to decide when the time is right, but the government will be ready to make the transfer of powers next May "as envisaged in the St Andrews Agreement".

He said completing devolution would send a message to the world the politicians in Northern Ireland "have truly broken away from the past and are intent on building a new and better future".