In his Christmas message to the Ulster public, Mr Woodward stressed his belief that Northern Ireland is now a much better place in the aftermath of the DUP-Sinn Fein deal on policing.

2008 will be remembered for the power-sharing administration grounding to a halt for almost five months as the two parties could not agree on a timeframe for the devolution of justice powers.

Last month, both parties signalled they had reached a compromise allowing a fully-functioning Executive to return.

"The historic agreement between the two party leaders, witnessed only a matter of weeks ago, marks the moment when we can say we have begun the final part of the process which will lead to the transfer of powers from me as Secretary of State in Westminster to elected politicians here in a power sharing Government in Northern Ireland," he said.

"This is the end of a long road for the people of Northern Ireland and an outcome which they so rightly deserve.

"Northern Ireland is in a much better place now and I and my ministerial colleague, Paul Goggins, would like to wish everyone a safe, peaceful and happy Christmas," he added.