Negotiations between Fianna Fáil and the Greens on the formation of a new government resume today after "differences" emerged between both sides during initial opening talks 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 confirmed in a statement last night that he had been 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 and there were differences on policy issues which they would try to resolve in the coming days.
Mr Brennan said after the meeting 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 initial talks covered very broad issues, including the economy, and were very much an exercise in setting out the parameters and timetable for continuing talks. When the talks get under way in greater detail from today, there is expected to be tough negotiating on several issues including hospital co-location, which the Greens are against, and their demand that corporate donations be banned.
Yesterday's talks started at 11am and finished at 2pm. Ministers Brian Cowen, Mr Brennan and Noel Dempsey comprised the Fianna Fáil negotiation team, while Mr Gormley, Dan Boyle (who lost his seat in Cork South Central) and general secretary Dónall Geoghegan made up the Green Party team. Today's talks are expected to last all day.
A Fianna Fáil deal with the Green Party, which has six TDs, and the PDs, with two TDs, added to Fianna Fáil's 78 seats, would give the Taoiseach a comfortable 86 votes, plus the added support of some Independents.
However, Fine Gael insisted last night that it is still in a position to form an alternative government, despite that fact one of its would-be coalition partners had started formal talks with Fianna Fáil. "Contacts are ongoing with the relevant parties involved," according to a spokesman.
In a statement on Saturday the Green Party said in spite of its best efforts, the prospects for an alternative coalition "look remote". Fine Gael sources insisted last night that this should not be interpreted as the Greens giving up on a Rainbow government. "To the contrary communication channels remain open." After the end of yesterday's initial talks Mr Gormley stressed the Greens were not ruling out talks with any other party.
In a statement last night Mr Lowry, the Tipperary North Independent TD and former Fine Gael minister, confirmed he had accepted an invitation from Mr Ahern to negotiate his involvement in a cross-party alliance "to provide a stable government". He said he did not envisage Enda Kenny having any realistic prospect of forming a government.
It is understood that the interim PD leader, Mary Harney, is open to the prospect of a cross party coalition and is expecting further contact from Mr Ahern later this week. She was aware that Fianna Fáil was to have talks with the Greens.
A Green Party spokesman confirmed yesterday that a meeting of the party membership has been called for the Mansion House in Dublin next Sunday to decide whether or not to do a deal with Fianna Fáil if the negotiation team reach agreement on policy issues this week. The membership will also have to agree on going into a cross party coalition with Fianna Fáil and the PDs.
Tensions ran high between the PDs and the Greens during the election and a party source said yesterday that that could be an obstacle for the party in agreeing a deal that included the PDs.
Stamp duty reform to be rushed through Dáil: page 5