Sir Hugh described members of the paramilitary group as "thugs" and said that in his opinion the organisation should not receive the £1.2m funding that was pledged by the government.

"It is not good enough for the UDA to say it is going to deliver a peaceful solution. This was organised criminality by the UDA.

"It is the second time in two weeks my officers have come under fire. It was the UDA and they should be held to account.

"They should wise up and get their act together," he said.

Sir Hugh added: "If you are looking for funding then you need to give something in return. If you want my personal opinion I would not give them 50p.

"They need to make clear they condemn criminal activity."

Speaking moments before peace talks were due to be held between the PSNI, UDA representatives and community workers in the wake of last night's disturbances in the loyalist Kilcooley estate, Sir Hugh also said that the UDA leadership does not have control of its members or else does not want to control its members.

Trouble flared last night after police raided a number of houses in the estate, with locals claiming that some residents were preparing for a funeral at the time.

Fresh raids were carried out at houses in the estate today.

Sir Hugh said that the police raids were a "major operation against drugs trafficking and fire arms acquisition" and confirmed that so far £6,000 as well as drugs and counterfeit goods have been seized.

Police were forced to fire baton rounds after seven shots were fired at officers during the disturbances last night, involving up to 200 people.

Other missiles, including petrol bombs, fireworks and stones were also thrown at officers.

In a bid to quell tensions a delegation of community and UDA representatives, led by Frankie Gallagher of the UPRG, community worker Mark Gordon and UUP MP Lady Sylvia Hermon, met with police in Bangor this afternoon.

Speaking before the meeting Mr Gordon, from the Kilcooley Community Forum, said:

"What we want to do now is to prevent a further deterioration in what has previously been an excellent relationship with the PSNI.

"It is our view that, had there been better communication with the police yesterday, this situation would not have escalated."

The UPRG's Frankie Gallagher, said that the violence had nothing to do with tensions within loyalism.

He said: "This was a community reaction to an unprecedented search and had nothing to do with tensions within loyalism anywhere else.

"It was about the police searches and the fact people were not allowed to get suits for a funeral. There is a lot of discontent in unionist communities which are feeling isolated at this time. We condemn all violence and ask people if they have a problem with the police to go through the Police Ombudsman's office."

DUP Assembly member for the area Alex Easton condemned the violence and the attacks on the police.

"I would also call for calm in the area," the North Down MLA said. "This is the last thing that the Kilcooley estate needs.

"All the hard work that has been put in by community workers and groups in the area has been undermined by this type of tension and violence."

A major clean-up operation in the estate, which was littered with burnt out cars and debris, was under way today.