Negotiators for Fianna Fáil and the Progressive Democrats have concluded a Programme for Government, subject to final agreement tonight by the Taoiseach, Mr Ahern, and the Progressive Democrat leader, the Tánaiste, Ms Harney.
Negotiators fine-tuned the language in the document by telephone on Saturday and Sunday. All remaining substantial points of disagreement have been resolved, sources say.
The final document will be put before the Fianna Fáil parliamentary party at noon on Tuesday, and the Progressive Democrats' parliamentary party and the latter's general council later in the day.
Last night, sources indicated that the Campus Stadium Ireland project, which created divisions between the parties, would go ahead, although built in a smaller form, over a longer time, with greater private-sector involvement.
Faced with diverging opinions on the semi-State companies, the parties have agreed to avoid specific commitments to privatise the ESB and other State companies.
Because of predicted economic difficulties, the Progressive Democrats have failed to win a commitment to cut the top rate of tax by a further 2 per cent. The focus instead will be to remove the lower-paid sector entirely from the tax net.
A new Department of Transport and Infrastructure will be created, and it will take over the role currently played by the Department of the Environment on the construction of major roads.
The Office of Public Works will also be moved out of the Department of Finance, to, possibly, the Department of the Environment, while the Department of Public Enterprise, in its current form, will be abolished.
The Government's campaign against Sellafield, which was run by Minister of State, Mr Joe Jacob, over the last five years, will be transferred also to the Department of the Environment, sources predict. The Progressive Democrats should hold two senior and two junior ministerial posts in the renewed coalition with Fianna Fáil, though the existing "super-junior" Minister of State position will be abolished.
However, it is not known if the Tánaiste will gain command of the Department of Transport and Infrastructure, or remain in the Department of Enterprise, Trade and Employment.
The Taoiseach's need to ensure a broad geographical spread could affect the hopes of the Minister for Arts, Culture, Heritage, and the Gaeltacht, Clare TD Ms Síle de Valera, Limerick East Minister of State Mr Willie O'Dea, and Waterford-based Minister of State Mr Martin Cullen. The Progressive Democrats' Minister of State for Foreign Affairs, Ms Liz O'Donnell, and new Laois/Offaly colleague Mr Tom Parlon are both expected to become junior ministers.
Mr Ahern's intentions about the make-up of his Cabinet are not known but it is doubted he will make the wholesale changes he hinted at last week.
