Taoiseach Bertie Ahern was pessimistic about a breakthrough in restoring the Northern institutions by the end of the year.
He said a new round of meetings with the parties was under way.
"It is hoped that progress can be made, although perhaps not by the end of the year," he added. "We will try to understand the concerns of the parties and to listen to their views on how we should tread forward in the new year in respect of the Good Friday agreement."
Mr Ahern was replying to a series of questions on progress made in the Programme for Government. Caoimhghín Ó Caoláin (Sinn Féin, Cavan-Monaghan) said the first paragraph of the programme had stated the Government's "overriding priority will be to secure lasting peace in Ireland through the implementation of the Good Friday agreement".
The Government, said Mr Ó Caoláin, had committed itself to the consolidation of its institutions and the development of a spirit of friendship and co-operation between North and South, without prejudice to the ultimate goal of achieving a united Ireland in peace and agreement.
Mr Ahern said he hoped they would be able to start making progress early next year on how best to get the institutions up and running.
"That will be our priority after the IMC report is published in January," he added. " I am sure the present round of discussions, which is based on listening to the parties, engaging with them on various issues and finding out how they would like to proceed, will prove to be useful." He was having a round of meetings, he said. The Secretary of State for Northern Ireland, Peter Hain, and the Minister for Foreign Affairs, Dermot Ahern, would also be involved in meetings before the end of the month.
"The extent to which the various parties will engage with the process in January, or early in the spring, should be clear to us by the end of the month," said Mr Ahern.
Green Party leader Trevor Sargent said the Government's third annual progress report was due. "Is it not fair to say that this could be seen as akin to an errant student writing his or her own report card," Mr Sargent asked.
Mr Ahern said the Government provided a progress report, but the people would decide.
