Bertie Ahern (Dublin Central, Fianna Fail)

On the general position, the recall of the Assembly on 15 May has proved to be an important milestone. While the process was slow at the outset, progress has been made subsequently and continues to be made. The engagement which has taken place among all the parties in the forum has been extremely helpful. It is jointly chaired by Sinn Féin and the DUP and a considerable amount of effort has gone into dealing with and teasing out important substantive issues.

However, I regret the continuing absence of direct engagement between the DUP and the leading Nationalist party, namely, Sinn Féin. Clearly, this is unhelpful to the process of getting agreement. Throughout the year, I have urged the DUP to engage directly with Sinn Féin. That would be helpful. I still wish it would happen because it would help to make progress before what is a definitive deadline of 24 November.

We have seen the DUP in the same room as Sinn Féin and other parties at the Preparation for Government Committee which is jointly chaired. It has been examining a range of issues, including policing, how the institutions will operate, the important economic issues that will face an incoming executive and there has been agreement on a number of issues to date. Others, obviously the most difficult ones, have yet to be resolved and will be the subject of further discussion when we meet in Scotland next month.

The deadline is entirely realistic. More than a year has elapsed since IRA decommissioning and the IRA statement announcing the end of its activities. It is now a matter of leadership and political will. We overcame most of the difficult issues in recent years and there is no reason the remaining few issues cannot now be resolved. Hence, 24 November is a real and fixed deadline. Our aim is to secure agreement for the restoration of the devolved institutions of the Good Friday Agreement by that date.

While good progress has been made, the continued failure of the two parties that are to be in the Executive together to engage worries me greatly, as it is time for progress on that issue. However, this is a matter for the DUP. As I understand it, Sinn Féin are ready to have such a meeting at any time.

On the payment to loyalist groups and the recent announcements, I met the Ulster Political Research Group, UPRG, on 13 July. The meeting was extremely positive and focused and that group is trying hard. During the meeting, its representatives briefed me on the conflict transformation initiative they have prepared. The initiative aims to bring about a genuine transformation in loyalism and is an extremely welcome development. Like all such matters, this will not happen overnight. It will take time. However, they have assembled a good plan to move away from paramilitarism and into community activity and working within their neighbourhoods. This is similar to the activities of many community partnerships, development companies and groups in the Republic. We have helped them in recent years and organisations have helped them by showing how such groups operate.

I informed the UPRG that the two Governments were committed to the restoration of the Assembly. I also said that if the Northern Ireland political parties fail to reach agreement, the two Governments will initiate a partnership arrangement to implement and protect the Good Friday Agreement.

I welcome the British Government's intention to fund a conflict transformation initiative in loyalist areas. It is important to so do and while I have always called on it to fund initiatives in Nationalist areas, it is equally important to call on it to help in this respect. Many within loyalism wish to break from the past and are genuinely engaged in efforts to move the organisation away from paramilitary activity and criminality. Such work should be supported and while the Government will not fund it, it has stated that any arm of the State or of community activity in the Republic will be glad to provide help. They have built up a number of ties, which is important.

I have stated a number of times that the British Government should extend practical assistance to those leaders within loyalism who work for transformation within their communities. We are extending practical assistance in several ways. We also give small grants from the Department of Foreign Affairs' reconciliation fund to groups in deprived loyalist communities and engage with a number of them. I hope such initiatives can assist in delivering transformation in loyalist areas and I hope we will see further progress in this respect. While I cannot say everything is perfect, we have had an extraordinary summer. It has probably been the best summer since the early 1960s. Even before the Troubles officially started in 1968, the North had been tense for several years. As for other work, a comprehensive all-island economic study is being undertaken which is intended to try to induce both business and trade union interests to work on the all-island economy and to try to help in its transformation.

As for the issue regarding the United States, discussions are under way. While I am not completely up to date with matters pertaining to the Department of Transport, the United States indicated that, as they did some years ago, they would move more and more of their activities to their bases in Germany. To the best of my knowledge, some larger aircraft already go directly to Germany. While a substantial number of flights still come here, this trend will increase, for American logistical reasons. Moreover, the American relationship with the German Administration is probably far stronger than was the case at the start of the conflict, which is probably also relevant. However, while it is not a question of them ceasing, they are certainly down-sizing their involvement in Shannon.

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