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Pádraig Nally leaving the Central Criminal Court in Dublin last night after he was found not guilty of the manslaughter of John "Frog" Ward.

Nally's acquittal brings divided response
The acquittal of Mayo farmer Pádraig Nally for the manslaughter of John "Frog" Ward provoked bitterly divided reaction last night.
VHI may be broken up in response to Bupa pull-out
The Government is expected to consider the break-up of the State-owned health insurance company, the VHI, following the announcement yesterday that its main rival, Bupa Ireland, is to pull out of the Irish health insurance market.
Detectives question Blair over 'cash-for-honours'
Downing Street maintained a defiant mood yesterday after British prime minister Tony Blair suffered the acute embarrassment of being questioned inside Number 10 by detectives investigating the "cash-for-honours" affair.

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Ireland

Patrols on drug lords in new clampdown on crime
Specialist Garda units leading the fight against organised crime are today beginning a major new push against drug gangs which Garda sources said would be the most intense operation since the murder of Veronica Guerin. p
High Court rules against lesbian couple
Court report: Judge finds that right to marry here is confined under the Constitution to the union of a man and woman p
North's parties hold talks on policing
The North's four largest parties have begun discussions on the possible framework for devolution of policing and justice to Stormont. The issue remains the largest unresolved concern blocking the path to powersharing between the DUP and Sinn Féin. p
Fitzwilton loses court plea over Burke payment
The Fitzwilton group has lost a High Court attempt to stop the Mahon tribunal holding a public hearing into the payment in 1989 by one of its companies of £30,000 (€38,000) to former minister Ray Burke for Fianna Fáil funds. p
Health Bill broadens nursing home checks
Any nursing home in the public or private sector which flouts regulations in future could face fines of up to €70,000 or imprisonment of up to two years, or both, if draft legislation published yesterday is enacted by the Oireachtas. p
Former UK police officer to investigate complaints
A former UK senior police officer and serious complaints investigator has been appointed as director of investigations by the Garda Síochána Ombudsman Commission. p
McDowell criticises bail law application
Dail Report: Minister for Justice Michael McDowell rebuked the judiciary on its application of the bail laws when he came under Opposition pressure on the escalating crime situation in the Dáil last night. p
State's climate change performance 'atrocious'
Carbon trading allowances to be bought by Ireland over a five-year period account for less than the equivalent of one second of all global greenhouse gas emissions, according to Minister for the Environment Dick Roche. p
Young population, longer life span lead to fall in death rate
The number of deaths in the Republic has fallen to a record low due to a combination of the high proportion of young people resident here and an increase in the lifespan of older people. p

Finance

Latest rise in interest rates drives up inflation
The Government's record on inflation came in for strong and widespread criticism yesterday as consumer prices rose sharply. p
Smurfit stake values Perlico at €55m
Packaging magnate Dr Michael Smurfit and a group of affiliate investors have taken an 18 per cent stake in privately-held telecoms firm Perlico, in a deal that values the business at some €55 million. p

World

Diana was not murdered, report finds
BRITAIN: A police investigation has dismissed conspiracy theories regarding the death of the princess, writes Lara Marlowe p
Detective appeals for details of fourth murder victim's movements
BRITAIN: Police are desperately trying to piece-together the last movements of Paula Clennell (24), identified yesterday as the fourth victim in the Ipswich killings. p
Ahern says no to separate beef deal with Russia
Taoiseach Bertie Ahern has rejected Russian pressure on Ireland to negotiate a one-to-one deal to protect Irish beef sales to the country from next month. p
Peter O'Toole nominated for Golden Globe
US: Irish actor Peter O'Toole received a nomination yesterday in the Golden Globe awards, which are presented annually by the Hollywood Foreign Press Association and are regarded as reliable indicators of the Oscar nominations to follow in January. p

Sport

Australia bite back after Monty's blitz
CRICKET/Ashes Test Series: As the sun began its descent into the Swan River, Australia came back hard at England in the final hour yesterday having had their noses pushed firmly out of joint for much of the opening day. p
Merely a training exercise for Spurs
Uefa Cup/Tottenham 3 Dinamo Bucharest 1: Jermain Defoe struck twice against Dinamo Bucharest at White Hart Lane last night as Tottenham finished top of their group and secured safe passage into the last 32 of the Uefa Cup - Martin Jol's team maintaining their unbeaten record in this season's European competition. p
Bizarre round as Goosen drops into trouble
South African Open: An 11 at the par-five 17th, which included a two-stroke penalty, cost defending champion Retief Goosen a share of the lead in the first round of the South African Open at Humewood Golf Club in Port Elizabeth yesterday. p