Scottish parliament meets amid uncertainty about coalition talks

Scotland's first parliament for nearly 300 years met yesterday in Edinburgh, with uncertainty continuing over coalition talks…

Scotland's first parliament for nearly 300 years met yesterday in Edinburgh, with uncertainty continuing over coalition talks and with sovereignty already emerging as one of its most contentious issues.

All 129 Members of the Scottish Parliament (MSPs) were sworn in, despite several of them objecting to the allegiance to Queen Elizabeth required by law. Mr Alex Salmond, leader of the opposition Scottish National Party, preceded his swearing-in by saying his group recognised the sovereignty of the Scottish people in line with constitutional tradition.

One of his backbenchers had to take the oath twice, having improvised first time by pledging allegiance both to the queen and to the people of Scotland. One MSP, Mr Tommy Sheridan of the hard-left Scottish Socialist Alliance, read out the affirmation under protest, saying his vision of Scotland was as a democratic socialist republic.

Mrs Winnie Ewing, the veteran nationalist who chaired the first session as the parliament's oldest member, said: "It is no secret this parliament to us is not quite the fulfilment of our dream, but it is a parliament we can build a dream on. The year 1707 was said to be the end of an auld sang. We together can begin to write a new Scottish song. I would urge all of you to sing it in harmony, fortissimo."

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The parliament's first act was to elect Lord Steel, the former Liberal Party leader in the House of Commons, as its presiding officer, or speaker. His role will be not only to keep order, but to chair the powerful business committee, and to be a key link in the uncertain relationship with Westminster.

The First Minister is due to be elected today. That is certain to be Mr Donald Dewar, leader of the Scottish Labour Party, which won 56 out of the 129 seats. He is expected to resign immediately from the UK cabinet, where he is Scottish Secretary. But his election may be postponed by the continuing talks over a possible coalition with the 17-member Liberal Democrat group.

With no experience of coalition government in the UK since the second World War, both sides are struggling to determine the guidelines for doing so, steering a route between agreement on specific policy and on general principle.

Optimism was rising last night of the two parties finding common ground on the most difficult issue of student tuition fees. Liberal Democrats promised during the election campaign to scrap the £1,000 sterling charge for better-off university students, introduced last year, and would have the support of the majority of MSPs if they did so.

But that would leave a gap of more than £40 million in the new Scottish government's annual budget. It would also put Mr Dewar's Labour Party colleagues in the London government in an awkward position approaching their next election. A compromise was emerging as talks continued in Edinburgh last night which could see fees reviewed next year, with the parliament having a vote on their retention.

Both party leaders have a tough job persuading their supporters to back a coalition.

Labour said late last night that it had struck a coalition deal with the Liberal Democrats. This was swiftly denied by the Liberal Democrats, who insisted the talking was still going on, although the search for agreement was "making progress". A spokesman said: "Both sides are continuing to talk. . . There is not going to be a statement this evening. They are still talking and still making progress."