Child benefit cuts, PRSI changes take effect

A number of measures announced in the Budget last month come into effect today, including cuts to child benefit and the respite care grants.

Monthly child benefit payments will be reduced by €10 to €130 for the first and second child, and by €18 for the third.

There is a 19% reduction in respite carer grants, to €1,375.

The ending of employees' PRSI allowance will mean all PAYE workers will pay PRSI at 4% on all their earnings.

Medical card holders will see each prescription charge trebling from 50 cent to €1.50.

The New Year also brings in cuts to back-to-education allowances and reduced payment periods for jobseeker benefit claimants.

Motor tax costs also rise today, dependent on a vehicle's age, engine size or emissions.

There are also increases of up to 2% in vehicle registration tax.

There is more bad New Year's Day news in the form of motor and health insurance price hikes.

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North Korea's leader makes rare address

North Korea leader Kim Jong-un has called for an end to confrontation between the two Koreas, in a surprise New Year speech broadcast on state media.

The Koreas are technically still at war in the absence of a peace treaty to end their 1950-53 conflict.

The address by Mr Kim appeared to take the place of the policy-setting New Year editorial published in leading state newspapers.

However, North Korea has offered olive branches before and Mr Kim's speech does not necessarily signify a change in tack from a country that vilifies the United States and US ally South Korea.

Impoverished North Korea raised tensions in the region by launching a long-range rocket in December that it said was aimed at putting a scientific satellite in orbit, drawing international condemnation.

North Korea is banned from testing missile or nuclear technology under UN sanctions imposed after its 2006 and 2009 nuclear weapons tests.

"An important issue in putting an end to the division of the country and achieving its reunification is to remove confrontation between the north and the south," Mr Kim said in the address that appeared to be pre-recorded and was made at an undisclosed location.

"The past records of inter-Korean relations show that confrontation between fellow countrymen leads to nothing but war."

Mr Kim took over power in the reclusive state after his father, Kim Jong-il, died in 2011.

The New Year address was the first in 19 years by a North Korean leader after the death of Kim Il-sung, Kim Jong-un's grandfather.

Kim Jong-il rarely spoke in public and disclosed his national policy agenda in editorials in state newspapers.

The two Koreas have seen tensions rise to the highest level in decades after the North bombed a Southern island in 2010 killing two civilians and two soldiers.

The sinking of a South Korean navy ship earlier that year was blamed on the North, but Pyongyang has denied it and accused Seoul of waging a smear campaign against its leadership.

Last month, South Korea elected as president Park Geun-hye, a conservative daughter of assassinated military ruler Park Chung-hee.

Ms Park has vowed to pursue engagement with the North and called for dialogue to build confidence, but she has demanded that Pyongyang abandon its nuclear weapons ambitions, something it is unlikely to do.

Absent from Mr Kim's speech was any mention of the nuclear arms programme.

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161 people died on the roads in 2012

Provisional figures from the Road Safety Authority show that 161 people died on the roads last year, an average of three a week.

The number represents a decrease of 25 people, or 15%, on that for the previous year, when 186 road deaths were reported.

The number of road deaths has now fallen every year since 2006.

It is also the fifth consecutive year that a new record low for fatalities in the Republic has been achieved.

The RSA pointed to the success of its three-year strategy aimed at reducing the number of road deaths.

A new eight-year safety strategy is now being put in place.

Minister for Transport Leo Varadkar noted that in 2012 loss of life on roads was the lowest ever recorded.

He said he looked forward to greater success in the coming years.

Road Safety Authority Chairman Gay Byrne said the figures marked an extraordinary achievement, but said the challenge now is to build on this success.

RSA Chief Executive Noel Brett thanked the gardaí and the emergency services for ensuring that roads are becoming safer and for caring for those who had been affected by road deaths and injuries.

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Ireland warned about EU presidency challenges

Ireland is beginning the first day of its six-month EU presidency.

European Parliament President Martin Schulz has warned that Europe must not allow 2013 to be a year of failure.

Mr Schulz said Ireland would face a major challenge in brokering a deal on the EU's 2014-2020 budget.

He raised the prospect of MEPs blocking an insufficient deal - that would create difficulties for the EU's regional, agricultural and research programmes.

Referring to ongoing problems in EU economies, Mr Schulz said it would be a disaster if the European Union did not find solutions.

Yesterday, Taoiseach Enda Kenny said Ireland's term would be about stability, jobs and growth.

Mr Kenny said there are real actions to back up each of those words.

He said Ireland would be in the business of solutions, a country driving recovery in Europe.

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Police seek to interview man over Tyrone assault

Police want to interview a man in connection with the death of a 19-year-old man, who was assaulted twice during a night out in Omagh, Co Tyrone.

It is understood the victim was punched at a bar in Omagh in the early hours of yesterday morning.

He was punched again outside another licensed premises on the Kevlin Road.

The man managed to make his way home to Emyvale in Co Monaghan, but was found dead at a house in the village.

Police believe the young man was attacked by a stocky man with red or blonde hair.

A post-mortem is being carried out at Our Lady's Hospital in Navan.

Gardaí and the PSNI are investigating his death.

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Congress yet to agree time for 'fiscal cliff' vote

The Republican leader of the US House of Representatives said this afternoon no decision has been made on when his chamber will vote on the Senate-passed "fiscal cliff" bill.

Eric Cantor said: "We have not made a decision yet," as he emerged from the office of House Speaker John Boehner.

Mr Cantor said such a decision would be made soon, however.

It could come as early as later in the day. Congress is to reconvene at 12pm local time (5pm Irish time).

The US Senate last night approved legislation aimed at halting the imposition of billions of dollars of spending cuts and tax increases.

The deal came too late for Congress to meet its own deadline of yesterday to pass laws halting $600 billion in tax increases and spending cuts due to come into force today.

But as today is a holiday, Congress still has time to draw up legislation, approve it and backdate it to avoid the harsh fiscal measures coming into force.

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Ceremony marks Ireland's EU presidency

A ceremony has taken place at Dublin Castle marking the start of Ireland's presidency of the EU, which formally begins tomorrow.

The ceremony was attended by the Taoiseach, Tánaiste, Cabinet members, MEPs, other politicians, diplomats and the Lord Mayor of Dublin.

Several hundred tourists and members of the public also watched on.

The ceremony also marked 40 years of Irish membership of the EU and the start of Europe's Year of Citizens.

The ceremony included Taoiseach Enda Kenny inspecting a Defence Forces guard of honour.

This was followed by a flag raising ceremony and the playing of Ode to Joy.

Speaking to the assembled guests, Mr Kenny said the Irish presidency would be about stability, jobs and growth.

Mr Kenny said there are real actions to back up each of those words and Ireland would be in the business of solutions, a country driving recovery in Europe.

He called for the presidency to bring new hope, possibility and confidence to our peoples.

Tánaiste Eamon Gilmore said what happens over the next six months would be key to shaping the recovery in Europe.

He said the Government would work hard to restore financial stability right across the continent so as to build the conditions for job-creating growth.

The Government will work to reach agreement on outstanding elements of a banking union and focus on trade, he said.

Asked about German Chancellor Angela Merkel's comments that the eurozone crisis is not over, Mr Gilmore said implementing the decisions on a banking union in the early part of the year is very important and is going to be a priority.

He also singled out what he called the scourge of youth unemployment as a priority, saying the Irish presidency would do everything within its power to tackle it, starting with a Youth Unemployment Package.

Minister for European Affairs Lucinda Creighton said it would be a no-nonsense, no-frills presidency focused on economic renewal for Ireland and Europe and would deliver tangible results.

She said the €60m that will be spent on the presidency is a really important investment.

Ms Creighton said the presidency would bring 30,000 visitors to Ireland during the six months and that the money spent also represents an investment in Ireland's reputation

At the end of the ceremony, children from the Blue Star Programme released 40 balloons into the air over Dublin Castle, to mark the 40 years of Irish membership of the EU.

At the same time, a peal of bells rang out from Christchurch Cathedral.

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Eurozone crisis far from over - Angela Merkel

The eurozone sovereign debt crisis is far from over, German Chancellor Angela Merkel has said in her New Year's address.

However, she says that reform measures designed to address the roots of the problem are beginning to bear fruit.

In a taped interview to be broadcast tonight, Ms Merkel urged Germans to be more patient even though the eurozone crisis has already dragged on for three years.

She drew a line linking German prosperity to a prosperous European Union.

"For our prosperity and our solidarity we need to strike the right balance," she said.

"The European sovereign debt crisis shows how important this balance is. The reforms that we've introduced are beginning to have an impact," she said.

Ms Merkel contradicted Finance Minister Wolfgang Schaeuble with those comments.

In an interview on Friday in Bild newspaper, Mr Schaeuble said the worst of the crisis was over.

Germany has been the paymaster in the eurozone crisis, to the anger of many German voters and a growing bloc of conservative lawmakers in Ms Merkel's coalition.

Germans remain wary of eurozone bailout efforts but give Ms Merkel high marks for what they consider to be her judicious handling of the crisis.

Ms Merkel proudly pointed out that unemployment in Germany had fallen to its lowest level since reunification in 1990, while the number of people employed had also risen to record highs.

"That means that many hundreds of thousands of families have a secure future," she said.

"And that means that a lot of young people have the security of training and jobs and thus will get off to a good start in their careers."

But in face of slowing economic growth, she also warned that conditions could be more difficult in 2013 than in 2012.

"I know that many people are naturally concerned going into the new year," she said.

"And the economic environment will not in fact be easier but rather more difficult next year. But we shouldn't let that get us down; rather it should spur us on."

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Renewed appeal over man missing in Dublin

Gardaí in Balbriggan have renewed their appeal for information on the whereabouts of 24-year-old Paul Byrne, who has been missing since the early hours of Christmas Day.

Mr Byrne was last seen at about 3am on 25 December on Sandy Lane in Rush, Co Dublin.

He is 1.65m (5'5") tall, and has blue eyes. He is of thin build and has short, light brown hair.

When last seen he was wearing grey tracksuit bottoms and a short, black jacket with a Ralph Lauren logo on the left side.

Anyone who has seen Mr Byrne or who can assist in locating him is asked to contact Balbriggan Garda Station on 01-8020510, The Garda Confidential Telephone Line 1800-666-111 or any garda station.

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Police blame dissident republicans for NI bomb

A senior PSNI officer has said that a foiled attempt to murder a police man in east Belfast yesterday was carried out by dissident republicans.

Assistant Chief Constable George Hamilton said the attack could also have killed the policeman's family.

The officer was about to take his wife and two small children out for Sunday lunch when he checked underneath his car, parked in the driveway of his home, and discovered a viable explosive device.

Constable Hamilton said: "If that officer had not checked under his car we would be looking at a murder, or multiple murders.

"All right minded people need to condemn this, it is a repugnant and inhumane act."

He said the dissident republicans who planted the bomb were anti-peace.

Constable Hamilton said he hoped the device would be useful as evidence because it was discovered and did not engage.

There was a severe threat level across Northern Ireland, he said, and appealed to officers to be vigilant and check under their cars.

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