LOYALISTS are to agree to monitoring and a timescale for the removal of paramilitary structures in return for a three strand 'wish list' that includes input into future political talks, an end to historic prosecutions and additional community jobs and facilities.

Former chief of staff to Tony Blair, Jonathan Powell is expected in Belfast as loyalists announce details of a new conflict-resolution initiative.

The statement will be issued Loyalist Communities Council, the equivalent of the Combined Loyalist Military Command that issued the loyalist paramilitary ceasefire statement 21 years ago.

Powell was one of a number of people who helped facilitate a series of meetings that started around 18-months ago with a view to finding a way of bringing an end to loyalist violence and creating a situation where they could dismantle structures and engage politically.

The process was kick started by UKIP assembly member David McNarry and initially had input from former assistant chief constable Peter Sheridan. However loyalists have said they were suspicious of the former senior PSNI officer and he dropped out of process at an early stage.

Speaking yesterday Mr McNarry said the process was initially about addressing how loyalists felt "disinfranchised from the political process" but would not comment further on the content of the statement to be read at a press conference in the Park Avenue Hotel in east Belfast.

Senior members of all the main paramilitary groups, apart from the breakaway South East Antrim UDA, took part in the process. All are expected to send representatives to the announcement.

Sources have told the Irish News that Powell gained the confidence of the leadership of the UDA, UVF and Red Hand Commando by telling them he felt guilty over the way loyalism had been 'cast adrift' by the political settlement secured by the Blair administration.

While disbanding was not discussed, mechanisms to allow people to step away in a gradual phasing out of the loyalist groups was on the agenda in return for a number of demands and financial incentives for community-based education and retraining projects.

It is not known where funding for the project will come from, but the British government have not yet agreed to fund the initiative.

Loyalists are expected to make a commitment to independent monitoring in return for a 'wish list' of demands that include an end to historical prosecutions.

A time-frame is to be put in place for dismantling of structure's to take place which are expected to be 2016 to coincide with the centenary of the Battle of the Somme.

They also are asking to be allowed to take part in political talks despite having no elected MLAs and significant funding for both facilities and long term employment for community and ex prisoners groups.

With another supergrass trial - based on evidence of former UVF commander Gary Haggarty - looming and recently re-opened police investigations based on the testimony to Boston College from former RHC Winston Rea, members of the UVF have been keen to reach an agreement.

A three person panel headed up by Lord Carlisle is expected to report back to Secretary of State Theresa Villiers this week on current levels of paramilitary activity. The report will be presented to the political parties taking part in talks before being made public.

The report, ordered in the wake of the murder of Kevin McGuigan to assess the existence of IRA paramilitary structures, will also give an overview of continuing loyalist activity with the leaders of those organisation keen to make the 'end game' statement ahead of what is expected to be a damning monitoring report.