The Taoiseach told the Dáil he had discussed the Northern Ireland situation with the British Prime Minister in recent days.

Asked if he had discussed the North with Mr Tony Blair on the margins of last weekend's EU summit in Copenhagen, Mr Ahern said they did not have a formal meeting "because we have had a great deal of contact over the past week or two".

He said they had been trying to at least reach a negotiating position by this Friday which would be used in the new year to get the parties into an intensive round of negotiations.

"Our officials have been meeting on a regular basis over recent weeks to get to that position. We will succeed in doing that by Friday, which is our plan."

Mr Ahern said the view was that they had until the end of February to reach a conclusion because if the Assembly had not collapsed and been suspended, it would have dissolved on March 20th to make way for the May elections.

"The Government and most of the parties are strongly of the view that that arrangement must hold. There will be major difficulties if the elections are postponed."

Mr Ahern was asked by the Fine Gael leader, Mr Enda Kenny, if he was confident existing arrangements relating to fishing would apply through next year to give a breathing space and lifeline to the 25,000 families in the coastal communities for whom fishing was their only livelihood.

The Taoiseach said difficult negotiations were taking place. He added that the Minister for Communications, Marine and Natural Resources, Mr Ahern, was endeavouring to reach an understanding with the Spanish.

"We will be isolated on proposals in some areas while in others, hopefully, we will reach agreement to achieve a balanced package of quotas."