The IRA and Northern Ireland's other paramilitary groups "must go out of business" US President Bush's special adviser Richard Haass has said.

Mr Haass was speaking on BBC NI's Spotlight programme on Monday before the suspension of the power-sharing executive by Northern Ireland Secretary John Reid at midnight.

The latest crisis follows allegations of IRA spying within the Northern Ireland Office.

Ulster Unionist Party leader and Northern Ireland first minister David Trimble demanded the disbandment of the IRA and the Democratic Unionist Party resigned its ministerial seats on the execuitve.

Mr Haass said he felt the suspension, opposed by Sinn Fein and the nationalist SDLP, was the best of a number of bad options.

Richard Haass: "Trust broke down"

"Obviously everyone would have preferred the power-sharing, devolved institutions of government to have stayed up and running.

"But the fact is that political institutions in Northern Ireland, like everywhere else, depend upon a foundation of trust. And simply, the requisite level of trust was no longer in existence."

Asked what he believed would restore the trust needed to rebuild a devolved government in Northern Ireland, he said: "It is going to require compromise from everybody.

"But as virtually every commentator has pointed out, the key right now is to remove the paramilitary dimension of Northern Ireland politics.

'Transition'

"We have to complete the transition that was begun years ago and essentially make politics normal. And that means there is no place for violence or for preparations for violence."

The IRA needs to give up any acts of violence. It needs to get rid of its arms. Essentially it needs to lose its paramilitary character

Richard Haass, US policy adviser

"Republicans, and the IRA more specifically, have made a number of important strides. But that certain kinds of activities continue to go on.

"And I would say the IRA, and paramilitaries across the board need to complete the transition and essentially go out of business."

Ulster Unionist leader and former Northern Ireland first minister David Trimble had demanded the disbandment of the IRA.

Asked if he believed the IRA should disband, Mr Haass said: "The IRA needs to get rid of its paramilitary dimension.

"It needs to give up any acts of violence. It needs to get rid of its arms. Essentially it needs to lose its paramilitary character."

But asked if he believed the Good Friday Agreement could be properly implemented without IRA disbandment, he said: "No. I don't see how you are going to the required level of trust to be in place, in order for power-sharing and devolved government to resume.

"So that is one of the things that has to be in place."