Mr Poots said there was no compelling case for the legislation
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Culture Minister Edwin Poots has said he is opposed to the introduction of an Irish Language Act.
He said this was despite the majority of respondents to the department's consultation favouring legislation.
Mr Poots told the NI Assembly that "compelling costs" were among the reasons he was against the act.
Sinn Fein's Barry McElduff, culture, arts and leisure committee chairman, said the move was "a mistake".
"He is missing an opportunity here, a major opportunity to prove that he is capable and willing of being minister for all of the people," he said.
Costs
Mr Poots said the Northern Ireland Civil Service had already spent just over £20m delivering Irish language projects and translations in the past year.
He said this figure excluded the expenditure of local councils and the Northern Ireland Court Service.
"The enhancement and protection of the development of the Irish language is an important matter for Northern Ireland, as is the enhancement and protection of the Ulster-Scots language, heritage and culture," he said.
"However, I remain unpersuaded that there is a compelling case for progressing legislation, at this time.
"There is, in my view, insufficient community consensus; potentially significant costs; and a real possibility that legislation could undermine good relations and in so doing prove counter productive to those wishing to see the language developed in a non-politicised and inclusive manner."
Sinn Fein's Barry McElduff said the move was a mistake
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Ulster Unionist assembly member David McNarry welcomed the decision.
"Respect, understanding and tolerance in relation to linguistic diversity would have been fundamentally undermined by the proposed act," he said.
"The Irish Language Act would further politicise Irish, place an undue and costly emphasis upon it and allow it to be used as a cultural weapon in an unarmed struggle."
The SDLP's Dominic Bradley said Mr Poots' decision was "a cause for regret".
"He has abdicated his duty to implement the promises made by the two governments in respect of the Irish language in the Saint Andrew's Agreement and in the Good Friday Agreement," he said.
"Whether Mr Poots likes it or not, the two governments have made binding promises with regard to the Irish language."
The Irish Language Act was promised to Sinn Fein by the then Prime Minister Tony Blair at the St Andrew's talks in 2006.
However, the act is now the responsibility of the Executive, and requires cross-community consensus.
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