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[DUKE NUKEM]

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[OMEN]

The Taoiseach has signalled that final year Exchequer returns, due to be published tomorrow, will show a tax shortfall of around €8bn for 2008.

Speaking on RTÉ Radio's This Week, Brian Cowen said the Government would now have to discuss the situation with the social partners and then take decisive action over the coming years to address the problems in the public finances.

He said that without corrective action, the Exchequer deficit in 2010 could rise to €20bn.
Mr Cowen signalled that the national wage agreement could be under threat, saying all options would be on the table during upcoming talks with the social partners, including the pay deal.

He said that what was now needed was for everyone to pull together and agree on an overall programme to stabilise the public finances.

Ireland is facing a very difficult year, he said, and next year could also be very difficult.

The challenges we face are unprecedented, Mr Cowen claimed, but added that we have to face into and address them.

But he said that without underestimating the problems we have to keep things in perspective and that we are entering this recession in a stronger position than before.

Asked if the deteriorating public finances meant tax increases were likely, Mr Cowen said the Government was not looking at tax changes as an immediate priority.

But he said there was no doubt in his mind that over the next four to five years, taxation will have to play a role in getting day to day spending back in balance with tax returns.

On the possibility of lay-offs in the public sector, the Taoiseach said the Public Expenditure Review Committee is looking at all aspects of public spending and the Government will then have to make the decisions based on its recommendations.

He agreed it was unlikely that there would be any expansion in public service numbers and that there could probably be a reduction.

The present situation as it stands is not sustainable for any Government, he said, and it had to be addressed.

Treaty goes beyond party politics

On the likely re-run of the Lisbon Treaty referendum, Mr Cowen said he believed people have seen in recent months especially, the importance of Irelands membership of the EU.

As a result, he said, there is a growing realisation among everybody that Ireland's national interests are to be in the mainstream of the EU, and standing alone is not in our interests.

He said the Government was working to address the concerns highlighted by the Oireachtas committee and departmental surveys.

He described the Treaty as a huge issue which goes beyond party politics

Mr Cowen said he was not worried that Fianna Fáil might be badly hit in the local and European elections, saying the party has good quality young candidates, who will be voted on based on the local realities.

He also said no decisions had been made on when the bi-elections will take place to fill the two vacant Dáil seats.

On the question of reports that Mayo TD, Beverley Flynn, is drawing an allowance due to only to Independent TDs, even though she has rejoined Fianna Fáil, Mr Cowen said he would be taking the matter up with Deputy Flynn and whatever is appropriate to be done will be done.

RTE

[OMEN]

Up to 1,000 people are taking part in a large-scale search for a Kildare teenager who went missing near a Co Wexford beach on New Year's Eve.

18-year-old Conal Owens from Naas became separated from his friends close to Curracloe Beach.

Bus loads of volunteers from Co Kildare are assisting gardaí and rescue services in the search, which is now in its fourth day
Today the search has been widened away from the beach and has moved inland.

Local gardaí describe some of the terrain in the area as difficult.

RTE

[OMEN]

A woman has been left with a serious face wound after she was attacked in public toilets in Belfast yesterday evening.

The woman, who is in her 50s, was assaulted by a man in toilets at Coles Alley off Church Lane in Belfast city centre at around 5pm.

A man, believed to have been armed with a knife, was seen running from the scene in the direction of Anne Street.
He is described as aged in his 20s or 30s and wearing a black jacket and black jeans.

The PSNI has appealed for anyone with information to come forward.

RTE

[OMEN]

Thousands of Israeli troops and scores of tanks have advanced into Gaza battling Hamas and surrounding the main city on a mission to end rocket attacks.

Up to 23 Palestinians were killed by tank shells or missiles fired from warplanes as families fled battlefield towns in packed trucks and cars to escape the biggest Israeli military operation since its 2006 war in Lebanon.

International efforts to halt the conflict floundered.
The UN Security Council failed to agree the wording of a statement on the conflict, with the US giving strong backing to Israel.

Israeli troops and tanks took over areas south and north of Gaza City.

Heavy fighting was also reported around the northern towns of Beit Lahiya, Beit Hanun and Jabaliya.

Explosions shook the enclave, home to 1.5m people, as the Israeli army took control of main roads.

There was a constant clatter of automatic gunfire in the territory which has been under a tight Israeli blockade for months.

In the hours since Israel launched its night-time offensive yesterday, at least 23 people have been killed, adding to the 485 Palestinians killed in eight days of air strikes when another 2,500 were wounded, Gaza medics said.

More than 80 children are among the dead.

Some 30 Israeli soldiers and 'several' Hamas fighters were reported to have been wounded since the ground offensive began, the army and medics said.

Israel has denied Hamas claims that soldiers had been killed.

The Al-Jazeera Arabic news channel reported that one Israeli had been killed but there was no immediate comment from Israel.

A Hamas spokesman, speaking as troops crossed the border, said Gaza will become 'a cemetery' for Israeli soldiers.

Witnesses said Israeli infantry and tanks had taken control of the Salaheddine Road, the main highway along the length of Gaza.

Protester killed in West Bank

In the occupied West Bank there are reports that Israeli soldiers shot and killed a Palestinian man during clashes.

A 22-year-old was shot in the head in the West Bank city of Qalqilya during a protest against Israel's military operation in Gaza.

The Israeli army said soldiers had shot a Palestinian during a riot near Qalqilya after warning the crowd to disperse.

Gaza offensive 'unavoidable'

Israel's Defence Minister Ehud Barak said before a cabinet meeting in Tel Aviv that 'the operation will be expanded and intensified as much as necessary. War is not a picnic.'

Briefing reporters after the meeting, an Israeli government official said: 'Israel has no intention to return to occupy the Gaza Strip.'

Government secretary Ovid Yehezkel said the incursion could last a long time, but added: 'The operation is aimed solely to achieve the goals set forth by the cabinet.'

Israeli Prime Minister Ehud Olmert said the Gaza offensive had been 'unavoidable' but Israel would not open a new front in the north.

Israel began 'Operation Cast Lead' on 27 December with the declared aim of ending rocket attacks into Israel from Gaza that resumed after a six-month truce ended.

Rocket fire from Gaza over the past week has killed four people in Israel.

Twenty-five rockets and mortar rounds were fired across the border today and hit the towns of Sderot and Ashdod, although no casualties were reported.

Schools in southern Israel remain closed.

Streets clear as soon as siren alerts of incoming rockets are sounded by authorities.

Ireland to send aid

The Minister for Foreign Affairs expressed grave concern over the Israeli incursion.

Micheál Martin said he regretted the escalation of the conflict and urged Israel to halt its operation and withdraw its forces.

Minister Martin also announced €500,000 in humanitarian aid for Gaza.

France, meanwhile, has criticised the Israeli offensive that Palestinian president Mahmoud Abbas warned would have 'grave consequences' for the region.

French President Nicolas Sarkozy was to hold talks tomorrow with Mr Olmert in Jerusalem and Mr Abbas in Ramallah.

Turkey also condemned the air and ground offensive and called for it to end immediately.

British Prime Minister Gordon Brown said the Israeli attack had created a 'very dangerous moment' in the conflict.

The EU's foreign policy chief Javier Solana called for an immediate ceasefire, adding that European nations were ready to contribute international monitors to help keep the peace.

Israel has called a snap general election for 10 February, and the current leadership has widespread public support for the offensive.

RTE

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