Loyalist terrorists are continuing to commit more violent acts in Northern Ireland than republicans, according to an independent report.

Publishing the second report by the Independent Monitoring Commission on Thursday, Ulster secretary Paul Murphy said paramilitary violence "remains at a disturbingly high level".

The study found that from March to August this year, shooting victims of republican groups were down by 42 per cent over the previous six months, while assault casualties were down 31 per cent.

Loyalist groups left 43 per cent fewer shooting casualties, while victims of loyalist assaults were also down by 26 per cent over the previous six months.

The report also highlighted paramilitary links to organised crime as a serious concern.

Of around 230 organised criminal gangs believed to be operating in Ulster, the IMC said it had been advised that about 60 per have paramilitary links and that, of the top 25 criminal gangs involved in international activities operating in early 2004, 17 had paramilitary associations.

"Seldom in the developed world has this high proportion of the most serious criminals been associated with groups originating in terrorism, with an organisational structure and discipline, and the experience of planning, learning and conducting sophisticated clandestine operations, methods of handling money, and with traditions of extreme violence," said the report.

Murphy said he was "very committed to addressing the issue of organised crime in Northern Ireland".

"Paramilitary violence in the form of murder, shootings and assaults has considerably reduced in the past six months but remains at a disturbingly high level," he said.

"The proportionate reduction is greater on the part of republican groups. Most violence is attributable to loyalist groups. 

"The range of paramilitary activity remains wide. Paramilitary groups from both sides remain deeply engaged in serious organised crime."

Republican terrorism

The IMC said the Provisional IRA had shown "no signs" of winding down its capabilities.

"It continued to recruit, though in small numbers, and to gather intelligence," the report said.

"We believe it was engaged in some relatively low level training. PIRA has committed no murders and has engaged in a lower level of violence than in the preceding period, committing fewer paramilitary shootings and assaults.

"It made preparations to undertake 'area defence' if the need had arisen during the marching season, and made efforts to contain violence during that period.

"We believe it was responsible for the major theft of goods in Dunmurry in May and was engaged in significant amounts of smuggling."

There was also a warning that the Continuity Irish Republican Army "has increased its level of activity, remains capable of making effective attacks, albeit sporadically, and is a dangerous organisation which intends to continue to engage in acts of terrorism and other crime".

And the report concluded that the Irish National Liberation Army has "committed a number of shootings and assaults" and was still involved in organised crime.

Loyalist terrorism

According to the commission, the Ulster Defence Association has "remained active".

"Though it has not been responsible for any murders it did undertake shootings and assaults," said the report.

"In August members of the UDA are believed to have undertaken a vicious sectarian attack against three Catholic men.

"Senior UDA members restated their intentions of holding to the terms of the 1994 loyalist ceasefire, and there is no evidence to suggest the organisation currently wants to engage in feuding with other loyalist groups."

But the UDA "remains heavily involved in many kinds of organised crime, and remains an active organisation capable of more widespread violence, with the will to commit it if judged appropriate".

The Ulster Volunteer Force was described as "a ruthless organisation, retaining a capacity for more widespread violence".

Parties react

Sinn Fein rejected the findings saying the report's information came from the British security forces who "are opposed to the peace process and opposed to the Good Friday Agreement".