Gardai believe the dissident IRA group responsible for the Omagh bombing has been planning to launch a new bombing campaign in the North despite its declared ceasefire.
It is also believed the seizure of bomb parts, similar to equipment used in the Omagh bombing, and two guns found by gardai during a search of a house in Dundalk yesterday might have prevented a bomb attack either in the pre-Christmas period or in the early new year.
The discovery of the cache, hidden in coal bags at a house in Cedarwood Park, in the Cox's Demesne area of Dundalk, follows the weekend statement by the RUC Chief Constable that members of the "Real IRA" group have been associating with members of the other dissident republican group, the Continuity IRA, and were planning attacks.
Last month the RUC intercepted a planned ambush on one of its members by the Continuity IRA in Armagh. The RUC also seized an AK47 rifle.
Senior Garda sources concur with Mr Ronnie Flanagan's assessment of the threat from the dissidents and have expressed concern that the "Real IRA" and Continuity group were preparing to launch attacks in the new year or before.
Three "timer power units" (TPUs) similar to the one used to detonate the Omagh bomb were among bomb-making parts and guns recovered. As a result of the find gardai arrested a 42-year-old man from Dundalk under Section 30 of the Offences Against the State Act for unlawful possession of firearms.
The man, who is married and known to gardai as a republican supporter, was taken to Dundalk Garda station. The DPP is expected to decide today whether to press charges.
The TPUs were ready for use and needed only to be connected to a battery for detonation. Garda sources said they believed they had foiled another bombing by republicans opposed to the peace process
A planned search of the house in Cedarwood Park also recovered a semi-automatic pistol and AK47 assault rifle with rounds of ammunition for both. The guns were in perfect condition and the pistol had recently been fired.
Garda sources confirmed they suspect the weapons and bomb-making parts belonged to the "Real IRA" and that the man detained would be questioned about activities of the organisation and possible associations with it.