Martin Ferris topped the poll

Fianna Fail has ruled out forming a coalition with Sinn Fein.

However, former Northern Ireland secretary Mo Mowlam said the result was another step forward in the peace process.

The party took its first seat on Saturday with Sean Crowe's election in Dublin South West, after topping the poll.

Sinn Fein had just one seat in the last Irish parliament - Caoimghin O Caolain in Cavan and Monaghan.

He retained his seat, while party colleague Martin Ferris gained a seat in Kerry North.

Mr Ferris, a former IRA gun-runner, won his seat at the expense of ex-Foreign Minister Dick Spring.

Results with 150 seats counted (out of a total of 166)

Fianna Fail: 74 Labour: 19 Fine Gael: 28 Progressive Democrats: 4 Sinn Fein: 5 Green Party: 6 Others: 14

Mr Ferris's supporters cheered and broke into nationalist songs as the result was declared at the count in North Kerry.

He did not top the list in the three-seat constituency, which was fought under Ireland's system of proportional representation, but came second to Fianna Fail with Fine Gael taking the third seat.

But Mr Spring, a former leader of the Labour Party, was out of the race in a major setback to one of the key movers of the Northern Ireland peace process.

He recently talked of wanting to return to the forefront of Irish politics.

Mr Ferris spent 10 years in prison after being arrested by the Irish navy when it stopped a converted trawler off the coast of Kerry in 1984 carrying seven tonnes of weapons from the United States.

Mr Ferris, a local councillor since 1999, said he was firmly behind the peace process but the local party has faced allegations of vigilante attacks on drug-dealers, and he himself was arrested after an incident last December before being freed without charge.

He denies the allegations, saying they are part of a smear campaign against him.

Mandate

Sinn Fein's gains in this election mean it continues to be the only political party on the island of Ireland to have seats in both the Irish and British parliaments.

The party's Aengus O Snodaigh in Dublin South Central and Arthur Morgan in Louth also took seats.

Sinn Fein's Martin McGuinness, the Northern Ireland education minister, said Mr Crowe's election was "an absolutely fabulous day" for the party.

"Our vote has gone up in every constituency so we are absolutely delighted," he said.

We see this as an endorsement for our peace process, for our vision of Irish unity and for equality

Gerry Adams Sinn Fein president

Sinn Fein president Gerry Adams said the result was a major endorsement of his party's handling of the Northern Ireland peace process.

"What you see in this constituency is a candidate here (Sean Crowe), now a TD, who thinks nationally and acts locally.

"We see this as an endorsement for our peace process, for our vision of Irish unity and for equality now and, when all the votes are counted up in this election, equality will still be needed.

"We will still need a public health service. We will still need the housing crisis to be dealt with.

Gerry Adams: "Major endorsement"

"We will still need to resolve all of the problems which beset people despite the wealth of the Celtic Tiger and the peace process and the surge for Irish unity will still need to be advanced."

When questioned about his history within the IRA, Mr Ferris said: "I have never hid my republican past and I have nothing to be ashamed of."

Meanwhile, Fine Gael's Austin Currie announced his retirement from politics after losing his Dublin seat.

Mr Currie, 63, was a founder member of the nationalist SDLP and former Northern Ireland minister.

In 1990, he was Fine Gael's unsuccessful candidate in the Irish presidential election.