Financial problems facing Northern Ireland cannot be remedied simply with a bailout from the UK Government, Chris Heaton-Harris has said.

The Northern Ireland Secretary reinforced his commitment to restoring the Stormont powersharing institutions during a speech at the British-Irish Association Conference at Pembroke College, University of Oxford.

The Stormont Assembly has been effectively collapsed for more than a year while the DUP refuses to take part until its concerns over post-Brexit trading arrangements are addressed.

Other parties have urged the DUP to return to Stormont as the region is beset by significant challenges, including around finances and public services.

Senior civil servants are continuing to run government departments in the absence of elected ministers.

Mr Heaton-Harris told the conference that resolving the political impasse is his top priority.

He also said that political dysfunction is limiting opportunities for the people of Northern Ireland.

He said: “My message to the party leaders throughout my time in post has been simple and consistent: you need to get back to Stormont.

“I am fully aware of the calls for me to step in and take the decisions that the absent Executive is neglecting.

“But I make no apology for holding firm in my position of believing in devolution, believing in powersharing, and believing in that historic (Good Friday) agreement that was signed 25 years ago.”

The conference brings together representatives from the UK and Ireland across government, business, academia and the arts.

Mr Heaton-Harris added: “It is a source of extreme disappointment and frustration to me that we enter the autumn in a state of ongoing political stasis.

“We need the Executive back in place so that ministers can take the tough decisions needed to balance the budget and raise the necessary revenue.

“And this must be supported by a strong Programme for Government, to progress much-needed and long-promised public service transformation which will deliver better outcomes for Northern Ireland.

“That is why I have urged the party leaders to work with the Northern Ireland Civil Service to agree a sustainable and credible Programme for Government that will allow an incoming Executive to take action from day one.

“The problems facing Northern Ireland cannot be fixed with a sticking-plaster funding settlement, which would not do anything to address the structural problems that have been building for years.

“If the Executive restoration is not timely, I will continue to support the Northern Ireland Civil Service in directing a series of public consultations on revenue-raising.”

Tanaiste Micheal Martin told the conference on Friday that the UK and Irish governments must work in “lock step” to ensure stability in Northern Ireland in the absence of devolution.