The British Prime Minister has described today's report by the Independent Monitoring Commission as 'the most positive report so far'.
The tenth report of the IMC was published this morning. It found that, while senior IRA men are lining their own pockets with the proceeds of crime, there is no evidence that the organisation's leadership has sanctioned violent activity.
The IMC said it was not aware of any current terrorist, paramilitary or violent activity sanctioned by the leadership.
The three-member commission said it remained its 'absolutely clear view that the Provisional IRA (PIRA) leadership has committed itself to following a peaceful path'.
The report added that the IRA leadership was working to bring the whole organisation fully along with it and has expended considerable effort to refocus the movement in support of its objective.
It reported: 'In the last three months this process has involved the further dismantling of PIRA as a military structure.'
On the loyalist front, the picture of the Ulster Defence Association was less positive.
The report found that the UDA continued to act violently, undertaking both shootings and assaults and aspired to arm and equip itself. Criminality within some parts of the organisation could be described as 'endemic', the report said.
In an interview with RTÉ News, Tony Blair said things had 'not slipped back but had moved forward'.
Mr Blair said the key thing was that any criminality had not been authorised by the leaderships of paramilitary organisations.
He said the 24 November deadline for the parties to form a power-sharing government was firm because it would be included in the Northern Ireland Bill which is presently before the Commons.
Mr Blair also said that there was no evidence that the recent murder of Denis Donaldson had been authorised by the leadership of the IRA.
Meanwhile, the DUP leader, Ian Paisley, has given a guarded welcome to the IMC.
Dr Paisley said he welcomed that unionist pressure on republicans was beginning to have some effect.
The Taoiseach said the report is positive for the peace process. Bertie Ahern said the report substantially removed any barriers that anyone, including the DUP, could have to the restoration of an inclusive Executive this year
Northern Ireland Secretary Peter Hain welcomed the report as positive and providing further evidence of the direction that PIRA and its leadership was taking.
He said: 'The Government believes that it should make a helpful contribution to the rebuilding of trust and confidence in Northern Ireland which is necessary for a return to full devolution.'
