Fianna Fáil and the Greens today resumed negotiations on the formation of a new government after "differences" emerged between both sides when talks opened yesterday.
The discussions are central to Taoiseach Bertie Ahern's plan to form an 86-seat government with the Greens and the Progressive Democrats, along with the further support of three of the five Independent TDs, Michael Lowry, Beverly Flynn and Jackie Healy Rae.
Mr Lowry has confirmed he was asked by Mr Ahern to negotiate with Fianna Fáil about his involvement in a "cross-party alliance". A Fianna Fáil source said a cross-party alliance would give Mr Ahern an enormous "comfort factor" and would offer a more stable option than doing a deal solely with the PDs and Independents.
Green Party chairman John Gormley and Fianna Fáil's Séamus Brennan described the opening three-hour discussions at Government Buildings as "cordial and constructive", but stressed that nothing had yet been agreed.
Mr Brennan said there were issues on which both sides placed different priorities which "are publicly known and emerged during the election" which they would try to work through.
Mr Gormley said the initial talks were positive but there were "quite a number" of issues to be discussed, adding: "We hope to have resolutions to any difficulties in the coming days". Neither would elaborate on where the differences lie.
Mr Gormley also said the Greens had not ruled out talking to other parties.
Yesterday's talks covered a range of issues and were an exercise in setting out the parameters and timetable for continuing talks. Tougher negotiating on several issues including hospital co-location, which the Greens are against, and their demand that corporate donations be banned, is expected today.