The Taoiseach, Mr Ahern, said there had been a number of positive developments in the North.

He added that the programme for government produced by the Executive in recent days, the budget for next year, the Executive work programme and the level of co-operation were strengthening the institutions.

"This view is widely held throughout Northern Ireland, and is well presented in this morning's Belfast News Letter editorial, which takes a positive view of all that is happening."

However, the Taoiseach added, there were still some negative elements. "Yesterday's statement and actions are helpful. I would like to see full engagement between Gen de Chastelain and the republican movement. Nevertheless, the outlook is positive. It would be unthinkable that anyone would try to undermine these positive elements."

The Fine Gael leader, Mr John Bruton, said he agreed with the Taoiseach about the positive steps taken.

He asked Mr Ahern if he would agree that the Belfast Agreement committed those associated with paramilitaries to more than mere engagement, which was a rather elastic word, with Gen de Chastelain.

"It commits them to the actual decommissioning of weapons. That was put into the agreement. Perhaps it need not have been, but it was, by all parties. There seems to have been little progress in this area."

Mr Bruton said there was a risk with inspection as a permanent arrangement giving legitimacy to the matter being inspected.

Mr Ahern said the inspections were not intended to give legitimacy to what was being inspected. "They are intended to show and prove that the arms are beyond use at this stage. It is hoped that the second inspection will show this to be the case."

But that did not take away from the fact that the agreement declared that arms were to be put beyond use and out of operation.

"That can only happen by the engagement of the International Independent Commission on Decommissioning and the republican and loyalist groups. I note from this morning's Belfast News Letter, and from what I have been hearing, that there is a view in Northern Ireland that no one seriously expects the decommissioning of loyalist weapons to happen while all the feelings of vengeance and terror remain close to the surface. That issue must be dealt with.

"I have continually urged Sinn Fein to urge the republican movement to engage in and renew the process with Gen de Chastelain. I say this knowing there can be only one conclusion to that process."

The Labour leader, Mr Ruairi Quinn, said it would be helpful to the peace process if there were indications by the republican movement in particular, and also the loyalist paramilitaries insofar as they were involved, that they no longer wished the continued exile from Northern Ireland of the 1,200 people who had been forced to leave under threat of intimidation and even death.

Agreeing, Mr Ahern said he would raise the matter wherever he could.

Mr Austin Currie (FG, Dublin West) said the "disappeared" should not be forgotten either.