Following the resignation of David Trimble as UUP leader in 2005 he stood as a candidate in the contest to succeed him and was narrowly beaten by Sir Reg Empey.[2] Sir Reg appointed McFarland as the party's chief negotiator following the election, in which role McFarland served through the period before restoration of devolution in Northern Ireland.
In 2007, following the restoration of devolution the details of a row between McFarland and Empey were leaked to the press. It is believed that McFarland turned down the nomination to be Minister of Health when he discovered that Empey planned to take the UUP's other ministerial portfolio himself, insisting that the party leader should concentrate on rebuilding the party from outside the Northern Ireland Executive. Empey did not back down from his stance and appointed Michael McGimpsey to the Department of Health instead.[3]
Resignation from the Ulster Unionist Party
McFarland announced his resignation from the Ulster Unionist Party on 30 March 2010,[4] five days after the resignation by North Down MP Lady Sylvia Hermon (also formerly UUP),[5] citing his disagreement with the UUP electoral pact with the Conservative Party. He made his intentions clear to continue to sit as an independent in the Assembly.