The Northern Secretary has delivered a positive assessment of the prospects for progress in talks next month aimed at restoring the Stormont assembly and power-sharing executive.
As he prepared to meet the Democratic Unionist Party this morning at the start of a new effort to advance the peace process, Mr Paul Murphy said recent statements by the DUP and Sinn Féin had been "very encouraging" but warned that substantial progress was dependant on a gesture from the IRA.
He said recent comments by the Sinn Féin president, Mr Gerry Adams, and the DUP deputy leader, Mr Peter Robinson, had been constructive.
"I have been pleased with what we have heard and seen over the past few weeks," he said. "Some of the statements which have been made have been very encouraging and the fact is that while there has been some difficulty over marches it has certainly not been as bad as the past.
"All of these augur well for the seriousness with which local politicians will tackle the restoration of the institutions."
However, Mr Murphy said there would not be a restoration of devolution "unless we resolve the paramilitary issue, whether that is in terms of decommissioning or paramilitary activity".
Government sources last night echoed Mr Murphy's cautious optimism.
A Dublin source said "a lot of hard work remains to be done", but the positive sentiments generated by the statements from Mr Adams and Mr Robinson indicated a willingness to engage in the talks.
"The mood music from the parties is very positive, as we've seen over the last couple of weeks," the Dublin source said.
Mr Murphy said the electoral rise of the DUP and Sinn Féin made agreement on the restoration of Stormont more difficult.
"Of course \ is not going to be as easy as perhaps it would have been in the past because of the way in which the electoral picture emerged in November of last year," he said.
However, he believed there was "a seriousness among all parties coming to the table that they want to address all the issues and they want devolution restored".
Mr Murphy said progress on paramilitary activity and decommissioning "is an issue not just for unionists but for people right across Northern Ireland who want to see an end to it". He added: "The fact is we all know the issues which have to be addressed. We are at a crucial phase in the process."
The DUP delegation meeting Mr Murphy today at Hillsborough Castle will be headed by Mr Peter Robinson and will include Mr Nigel Dodds and Mr Jeffrey Donaldson.
Bilateral talks involving the Government recommence at Stormont next week. The Stormont meetings will pave the way for a meeting between the Taoiseach, Mr Ahern, and the British Prime Minister, Mr Tony Blair, during the second week of September.
That meeting will set the scene for the intensive all-party negotiations chaired by the governments at Leeds Castle, Kent, beginning on September 16th.
Writing in The Irish Times two weeks ago, Mr Adams said devolution of policing and justice powers on a short time-scale would "form the spine" of any deal to restore Stormont. This followed comments that republicans would have to address unionist needs.
"I think political unionism uses the IRA and the issue of IRA arms as a excuse," he said. "I think that republicans need to be prepared to remove that as an excuse."
In his Irish Times article, Mr Robinson said unionists saw devolution of justice powers as "no big move". However, transfer of such powers could only be done in a manner that maximised unionist confidence. This would not be done quickly or to any prescribed timetable, he said.
Last night Mr Pat Doherty, the Sinn Féin MP for West Tyrone, accused the British government of failing to deliver on its commitments on policing, the administration of justice, demilitarisation, equality and human rights.
He said this was "directly related to its determination to suppress the truth about its policy of collusion" with loyalist paramilitaries.