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The Northern Ireland Office (NIO) has removed portraits of the Queen from its Belfast headquarters.
Three weeks ago, Lord Maginnis told the House of Lords an NIO Civil Servant was paid £10,000 for having to walk past portraits of the Queen.
The senior employee was reportedly offended by the pictures in Stormont House.
The employee was consulted about what image should be used, and suggested one of the Queen meeting Martin McGuinness.
All photos of the Queen have now been removed from the building, the News Letter has reported.
Many nationalists in Northern Ireland do not regard themselves as British subjects, and would not recognise the Queen as their head of state.
The Northern Ireland Secretary of State, Julian Smith, said he recognised “the importance of the Northern Ireland Office being an open and inclusive place to work”.
“As an employer in Northern Ireland, the NIO takes its obligations under the Northern Ireland Act and Fair Employment legislation seriously,” he added.
‘This is outrageous’
Ulster Unionist peer Lord Empey said the issue had been raised with Boris Johnson during his visit to Northern Ireland, saying the new prime minister “looked a bit shocked”.
“Hopefully his staff will follow up on this and we will get some clarity,” he added.
Meanwhile, Ulster Unionist peer Lord Rogan said: “If true, this is outrageous. It is political correctness gone mad.”
When the story was initially reported, the top civil servant at the NIO, Sir Jonathan Stephens, emailed every employee to “offer some reassurance”.
In an email, seen by the BBC, he said the office was in contact with the individual concerned and was offering support.
Lord Rogan has since questioned the issue again in the House of Lords.
He asked the government to set out the criteria used to determine which portraits are displayed or removed from NIO buildings and to clarify the facts around what Lord Maginnis had told peers.
Posters, pictures and portraits
In response, NIO minister Lord Duncan said his office was working in accordance with guidelines laid down by the Equality Commission.
“The NIO is sensitive to the display of ‘posters, pictures, portraits or other displays that are more closely associated with one or other of the communities’ and will consider any concerns raised by employees,” he said.
“I can confirm that the department takes steps to ensure no such images are displayed in Stormont House.”
Lord Rogan said that the response “would seem to confirm that Royal portraits have been removed from Stormont House”.
When contacted for a response, the NIO stated: “We will not comment on individual personnel matters, nor will we comment on the specific comments made by Lord Rogan”.