A RENEWED IRA ceasefire would lead to the early release of paramilitary prisoners, the Taoiseach indicated.

Mr Bruton said that during the last ceasefire the Government took an advance view on releasing prisoners who had previously been associated with paramilitary organisations. "I would certainly see no difficulty in resuming a policy of early release once a ceasefire was restored."

He was replying to the Fianna Fail leader, Mr Bertie Ahern, who said that if there was another IRA ceasefire a deadline of Christmas 1997 should be set for the release of prisoners in the Republic. There was no point in naming a date for all party talks without confidence building measures to bring people together, he added.

Welcoming the transfer of Patrick Kelly from Belfast to Portlaoise, Mr Ahern said the Irish and British governments should deal with the republican and loyalist prisoner issue. "I think that it would make the resumption of a ceasefire unstoppable."

Mr Bruton said he was very much aware of the need to show a compassionate view on prisoner issues in terms of rebuilding a commitment to the political process in the communities in Northern Ireland where support for paramilitary violence had been strong in the past.

"A compassionate and reasonable view regarding prisoner issues does demonstrate to people in those communities that those in political authority are conscious of the sufferings that have been undergone.

Account had to be taken of the perspective of the victims of crime, who also had a concern, but it had to be put in the context of the wider goal of the restoration of peace and the establishment of the absolute paramountly of politics as a way of resolving problems and thereby removing violence from the equation once and for all.

Replying to the PD leader, Ms Mary Harney, he said he was "absolutely convinced" the British government was committed to substantive and all party negotiations. "I believe that the present British Prime Minister is, in particular, a politician who is deeply interested and engaged in the peace process."

But, he added, "obviously any additional reassurance that can be given to those who have not heard the reassurances given already should be given".

Asked by Mr Ahern about his discussions with the Ulster Unionist Party leader, Mr David Trimble, he said he would not go into its detail. "All I will say is that the meeting was a very useful one and that we covered all the relevant issues in a very thorough way in a comparatively short space of time."