The Taoiseach was pessimistic about the Drumcree crisis when he replied to Opposition questions in the Dail yesterday.

He said that his assessment was bleak. The residents had a determination from the Parades Commission which must be enforced by others. The Orange Order was not prepared to meet the nominated person from the residents, and it was unlikely that the residents would allow anybody else to negotiate for them.

Despite the best efforts of the church leaders, practically all the political parties and most of the senior representatives, there had been no direct dialogue between the residents and the Orange Order. "In my assessment that has to happen. I cannot see why it should not happen. Whatever about what happened in the past, I think it is certainly worth doing that.

"Whatever about Drumcree 1998, there will be Drumcree 1999. Sometime, somewhere, people will have to try and look to the broader picture. The reality is that there are 3,000 marches, 2,991 of which work relatively calmly. Certainly over 2,500 work very calmly. Where there is dialogue, compromise and common sense, it works."

Mr Ahern said he did not share the assessment that that they had until Sunday morning to resolve the matter. "I think we have several hours and no more than that. I think people should think about the consequences, which are quite grave." Mr Ahern condemned the ongoing arson attacks and said he hoped people would not get involved in reprisals which would serve no purpose other than heightening sectarian tension.

The Fine Gael leader, Mr John Bruton, commended the efforts being made to find an agreed solution to a potentially serious confrontation. He said it was very important that the grassroots members of both communities in Portadown would look at the issue on a global basis.