HOPES of an early end to the firefighters' strike were dashed last night after Deputy Prime Minister John Prescott hinted at 11,000 job cuts in the fire service.

Mr Prescott told MPs that early retirements in the service provided "ample opportunity" to discuss "more efficient utilisation of labour".

The warning - the first time the Government has raised the threat of job losses - infuriated firefighters on picket lines across the country on day five of the eight-day-long walkout.

"It's an absolute disgrace," said Dave Whatton, an executive member of the Fire Brigades Union. "It confirms what we have suspected all along - at least the Government has come clean at last.

"It's an appalling suggestion and there is no way this union will sign up to the loss of so many jobs."

As the dispute raged, soldiers in the North-East began to take possession of the region's first Red Goddesses.

Nine of the modern appliances - normally used for training and released with the permission of local authorities - could be deployed within days to emergencies across County Durham, Cleveland and Tyne and Wear.

The first engine arrived at the TA Centre in Darlington yesterday afternoon and soldiers from the 40 Regiment Royal Artillery at Catterick will begin training on it today.

The Red Goddesses are faster than the old Green Goddesses, have power steering, larger water tanks and longer ladders. Seventy have been distributed across the country and more could be released if the strike continues.

Sergeant Nigel Woodward, from the 40 Regiment, said he hoped the new machine would ease public fears about the efficiency and speed of military fire crews.

Meanwhile, FBU general secretary Andy Gilchrist said the Government had finally "come clean" that the Bain review into the fire service would result in a massive loss of jobs and fire appliances and the closure of fire stations. "It is obvious this will result in a much worse service to the public," he said.

Mr Prescott raised the threat of job cuts when he told the Commons that 20 per cent of the fire service was expected to retire early in the next two to three years.

"In those circumstances, it seems an ample opportunity to discuss how you might deal with the more efficient utilisation of labour without redundancies or sackings," he said.

Mr Prescott's speech was played on radios at picket lines.

Union leaders said they had been fearing an assault on jobs following the Government's tough stance on pay.

The fire service had large intakes of staff in 1974 and in 1978, after the last strike, so many workers are nearing 30 years service, which means they are close to retirement.

Local Government Minister Nick Raynsford will meet the employers today to discuss further the process of modernisation of the service.

The Government, Mr Prescott insisted, could not be asked to find additional money outside agreed spending limits. ''To do so would risk fundamental and lasting damage to the economy."

Green Goddess crews were called to a string of minor incidents across the region yesterday.

One was called to Fenby Avenue, Darlington, last night when a car caught fire after crashing into the side of a house. No one was reported injured.