Fianna Fáil and the Greens last night agreed a draft five-year coalition deal, including a commitment to introduce a carbon tax during the lifetime of the next government, write Mark Hennessy, Stephen Collinsand Miriam Donohoe.
If the deal is ratified at today's Green Party national conference in Dublin, the Greens will join a three-party coalition government with Fianna Fáil and the Progressive Democrats, supported from outside by a number of Independents. The deal needs the support of at least two-thirds of the delegates in order to be approved. About 500 are expected to attend.
Taoiseach Bertie Ahern and Green Party leader Trevor Sargent are due to meet this morning to finalise agreement on the shape of the new government.
Green Party members will not be told today how many ministers the party will have in the new coalition before they vote on last night's draft agreement.
Last night the leader of the Greens, Trevor Sargent, said the selection of ministers was a matter "fundamentally" for the Taoiseach. "We will not be going into detail in relation to the formation of the government unless we have the prospect of the formation of the government."
It emerged last night that the Greens have accepted that Iraq-bound United States military flights will continue to use Shannon airport and that all new roads planned by the outgoing Government will go ahead.
Meanwhile, Fianna Fáil has offered acting PD leader Mary Harney a transfer to the Department of Foreign Affairs, in a bid to overcome Green objections to her remaining in the Department of Health and Children. However, Ms Harney refused the offer outright and she is now set to resume her command of health, including the plan to build private hospitals on public hospital grounds, when the new Dáil meets on Thursday.
The agreement between Fianna Fáil and the Greens was sealed shortly before 8pm.
A compromise on Shannon means that Dáil approval will be required before any non-United Nations mandated military flight will be allowed to land, but this will not interfere with the Americans' current use of the airport, since they now operate on a UN mandate.
The Greens have also accepted that the controversial M3 motorway in Co Meath, which is to run near the Hill of Tara, will go ahead, despite its previous vociferous opposition to the plan.
Fianna Fáil has refused to offer any concessions to the Greens on another one of its key election platforms - the demand for an end to political parties and politicians accepting corporate donations.
The carbon tax will be introduced at some point over the next five years, but the level has not been agreed: "It is for an uncertain time, at an uncertain rate," one source close to the talks told The Irish Times late last night.
The Greens have accepted that Fianna Fáil's plan to cut both the standard and top rate of tax will go ahead, subject to Fianna Fáil's election campaign qualification that they can be afforded by the exchequer.
Following strong demands for extra funding for education from Green negotiators John Gormley, Dan Boyle and Donall Geoghegan, Fianna Fáil has committed to spending an extra €50 million a year.
The Greens have sought the departments of the environment and transport, but no agreement has yet been reached on this, although it is possible that both departments could be substantially reordered.
In line with these priorities, it was suggested to the Greens that sections of the department of the environment would be detached and merged with energy to form a new department responsible for climate change issues.
Despite the Greens' demand for two senior ministers - using the precedent set by the Progressive Democrats in 1989 - Fianna Fáil has refused, offering one senior, one so-called "super junior" and one ordinary minister of state post.
Meanwhile, Taoiseach Bertie Ahern is expected to conclude deals today with Dublin Central TD Finian McGrath and Tipperary North TD Michael Lowry for their support for the next five years.