Unionist politicians welcomed the appointment of Mr Peter Mandelson as the new Northern Secretary and said replacing Dr Mo Mowlam would help the peace process. Nationalists paid warm tributes to Dr Mowlam.
Mr David Trimble, who had called for Dr Mowlam's replacement, denied the new appointment was a victory for him. The North's First Minister is expected to meet Mr Mandelson today. He said he believed British government policy would remain "coherent".
The UUP deputy leader, Mr John Taylor, said he expected Mr Mandelson would "regain the confidence of both communities".
The party's security spokesman, Mr Ken Maginnis, said there was "huge relief" among unionists. "Mr Mandelson has an exceedingly difficult job coming at this particular time. He has to make corrections to Northern Ireland policy and direction. He will - if he sticks to democratic principles and adheres to those issues of genuine public interest - have the co-operation of the UUP."
The Rev Ian Paisley said Dr Mowlam was leaving the North "in failure" and her replacement, Mr Mandelson, was "another political failure". The DUP leader said: "If Tony Blair believes that by appointing an expert spin doctor it will help get him past the current political impasse, he is wrong.
"The great political fixer will become unfixed in Northern Ireland unless he changes the policy contained in the Belfast Agreement." The Northern Ireland Unionist Party leader, Mr Cedric Wilson, said there should be "no tears" at Dr Mowlam's departure and "no flags put out" for Mr Mandelson. "I don't believe there will be any great change of policy."
The SDLP leader, Mr John Hume, welcomed Mr Mandelson's appointment but said Dr Mowlam had been "outstanding" as Northern Secretary. "The people of Northern Ireland owe her a deep debt of gratitude for the superb work she has done, particularly in such difficult times. She has made an enormous contribution to creating peace on our streets."
The SDLP Assembly Party said it was certain Mr Mandelson would approach the job "with the energy and vigour which have been the hallmark of his career".
Mr Gerry Adams wished Dr Mowlam well in her new job and was certain she would bring "the same energy and focus she brought to her time in the North". The Sinn Fein president is seeking an "urgent and early meeting" with Mr Mandelson. It was crucial he resisted unionist attempts to "rewrite, reinterpret or renegotiate the agreement", he said.
Ms Bernadette Sands McKevitt, of the 32 County Sovereignty Movement, said: "The comings and goings of British ministers is irrelevant. While the names and personalities of these ministers may change, the fact remains that they are upholding Britain's undemocratic and illegal rule in Ireland."
The Republican Sinn Fein president, Mr Ruairi O Bradaigh, said Dr Mowlam's replacement signalled "the failure of Britain's plans to strengthen her undemocratic rule in Ireland".
The Alliance leader, Mr Sean Neeson, is seeking an immediate meeting with Mr Mandelson.
Mr David Adams, of the Ulster Democratic Party, the UDA's political wing, warned Mr Mandelson: "The last thing Northern Ireland needs is spindoctoring around the issues."