In an interview he warned they pose a severe threat.
But loyalists have also been active, with protests over flag-flying over the last six months leading to disturbances in which well over 100 police officers were injured. More than 160 loyalists have since been charged.
"Where I think politicians have a greater role to play is in addressing deep-seated social need as opposed to just dealing with the rhetoric of shared future. We need a lot more focused work in those difficult disadvantaged neighbourhoods where paramilitarism has its roots, to try to improve the life particularly of young people, and deal with the angst felt by working-class Protestantism and republicanism."
Baggott will be in overall charge of security at the G8 summit in Northern Ireland next month, for both his own force and 3600 officers brought in from Britain as reinforcements.
Preparations include a fleet of military helicopters for VIP visitors and the provision of hundreds of temporary cells in the event of disturbances.
Fears are the loyalists' controversial summer marching season will again result in riots.
- Independent