A Sinn Fein proposal to allow loyal order parades in Newtownbutler to go ahead without protest was thwarted by rival republicans, The Impartial Reporter can reveal.

Several face-to-face meetings between nationalist residents and representatives from the loyal orders had taken place in the run-up to last week's parade.

Sinn Fein Councillor and Chairman of the Newtownbutler Residents Association Thomas O'Reilly had then reported back to the members of the residents group.

A source close to the residents of Newtownbutler revealed that when Mr. O'Reilly brought the proposal back to the residents, he told them that cross-community money was available through the Peace 3 Programme if they "delivered".

According to our source, Mr. O'Reilly said: "Over the past couple of years there has been some talks to try and find some solutions and to try to find ways to even set up talks. This last year there has been an opportunity through the Peace 3 Programme to bring in some peace money -- cross community money -- into the village. But that money can only be delivered if we deliver. Out of that came the negotiations for the parading issue." However, present at the meeting was Tony McPhillips, a republican known to be opposed to mainstream Sinn Fein.

It's understood Mr. McPhillips described Friday night's planned parade as the most "contentious" of all the proposed parades.

He claimed the proposed demonstration had "nothing to do with band parades" and that this was the loyal order's "expression of their loyalist and protestant culture".

Mr. McPhillips questioned the "real motive" of allowing "Kick the Pope" bands into the nationalist village, according to our source.

He then overturned Mr. O'Reilly's proposal, saying "no amount of Peace building money" was going to resolve the issue of bands "trampling into Newtownbutler".

It's understood Mr. McPhillips then accepted the proposal to allow the local Orange and Black Preceptory parades this year to have a parade to and from the Orange Hall to the local Church of Ireland Church. But he strongly objected to the parade by the loyal order and proposed to bring in as many people as possible to prevent the "clearly unwanted parade" from taking place.

We are told that John Connolly, who referred to himself as a representative from the Fermanagh 32 County Sovereignty, then seconded Mr. McPhillip's proposal.

Speaking to The Impartial Reporter yesterday, Sinn Fein MLA Michelle Gildernew said: "Peace money aside, I think Sinn Fein have played a good leadership role over the last decade regarding the problems of parading in Newtownbutler. Thomas O'Reilly has been a key element to that. I think his actions [during the meetings] were to try to help find a solution. We don't have control over certain elements," she said.

Ms. Gildernew added: "I would say that the buck stops at the Orange Order. I don't have a problem with people marching in other parts of Fermanagh, I just can't imagine why they want to march in Newtownbutler. The local community over the years have never wanted them to march and I think the Orange Order need to take stock," she said.

The loyal order parade and the protest by nationalists passed off without trouble in Newtownbutler on Friday night.

Protesters blew whistles and waved posters saying "Re-route your flute" and "Keep Newtownbutler Sectarian Free", while hundreds lined the streets on the opposite side of the village to support the bands. Dozens of police watched over the crowds and a police helicopter hovered above.

Earlier on Friday, the Belfast High Court rejected a local resident's application for judicial review of the Parades Commission's decision.