He also called for dialogue between the loyalist leadership and the Department of Social Development before the 60-day deadline on decommissioning runs out.

Minister Margaret Ritchie has warned she will pull a £1.2m grant for a conflict transformation initiative if the UDA fails to move on the arms issue.

Jackie McDonald said there were criminals using the UDA's name as "a flag of convenience".

The UDA leader said: "The leadership accepts that although they have worked hard and have removed the majority of the criminal element, there are some people using the organisation's name as a flag of convenience.

"If Hugh Orde knows who those people are, then he should remove them. They (the police) keep saying there are all these drug dealers, all these pimps, all these racketeers.

"If he knows who they are, then he should remove them, and if he doesn't know who they are, then he shouldn't be saying it."

McDonald also wants talks with Margaret Ritchie's department - but says decommissioning within the 60-day deadline is "just not do-able".

"Some of the people who represent her could begin initial discussions and go back to the minister with their analysis," he said. "If she is happy that progress is being made, then she should sit down herself with certain people. "

He suggests those talks may have to involve the men at the very top of the UDA.

"You would think she would have to speak to people like that," McDonald said. "The UPRG can only tell her so much. She could go straight to the leadership."

He is suggesting progress can be made on confidence-building measures, but is adamant there will be no decommissioning.

"The organisation will not tolerate decommissioning especially for £1.2m," McDonald said.

"We can't be selling the guns - selling out," he continued.

But he said talks between the loyalists and the department would be useful "to encourage the process along so that at the end of 60 days we are in the best possible place".