Gormley confident on prospect of cross-party Budget forum

Government and Opposition parties will come together to hammer out an agreement on multi-billion euro public spending cutbacks within days, Environment Minister John Gormley claimed today.

But Finance Minister Brian Lenihan ruled out any imminent possibility of a full-scale National Government to steer the country through the worst economic crisis since the foundation of the State.

Mr Gormley said cross-party talks to seal consensus on how to slash the national deficit to 3% over the next four years were "already sorted".

The Green Party leader insisted Taoiseach Brian Cowen has signed up to the initiative after Finance Minister Brian Lenihan intervened and that Opposition leaders were open to a deal.

"[Mr Cowen] is on board, we've had a very positive intervention from the Minister for Finance and we are going in the right direction," he said.

"I am very confident that by the end of next week we will have people in a room."

Referring to political consensus in Finland to overcome recession, he added: "I've been in contact with the leaders of the other political parties and I believe that we will have the sort of consensus that happened in Finland."

Ireland was "on the ropes" and it could no longer be politics as usual, because it was not business as usual, said Mr Gormley.

After opening the Department of Finance books to the Opposition, Mr Lenihan said developing a common analysis on the way forward would help a "united national effort" to secure jobs and growth.

While he accepted a cross-party forum could work if everyone agreed on the problem, he said a National Government was not realistic.

"It is clear that there isn't time to construct a National Government by the middle of November," he said.

Earlier, prominent Fine Gael TD Brian Hayes claimed a national government made sense - but only after a General Election.

The party's public spending spokesman said the crisis was so stark that the three major parties could form a coalition.

But the former frontbencher, who was demoted after the failed coup against party leader Enda Kenny, insisted consensus on a four-year austerity plan could not happen until the public go to the polls.

"I think because the difficulties are so severe for the country at the moment... it may well make sense that a National Government would be made up of the three principal parties in Dáil Éireann after a general election and after the public have voted and given a mandate to the particular parties," he said.

Last week, Fine Gael's shadow Cabinet ruled out a cross-party coalition, insisting it will not support Fianna Fáil retaining power.

In a statement, they said the current crisis was in a different context to the 1980s when the party propped up Charlie Haughey's minority Government to get through a crippling downturn.

Mr Kenny has also shot down any prospect of a return to non-opposing Opposition.

Mr Hayes, Fine Gael's junior finance spokesman with special responsibility for public expenditure, said there is currently no mandate for any party to sign up to savage cutbacks needed to slash the spiralling national deficit.

"The only potential for a national government would be after a general election, when there is agreement on that package," he told BBC Northern Ireland's Politics Show.

"At the end of the day, the only way the Irish people can support that four-year package is by way of a general election.

"I would see the potential of an election, and after that, possibly, a national government at that stage.

"I think it would be impossible to have a national government in advance of a general election."

Mr Cowen has also poured cold water on calls from Mr Gormley for a cross-party pact, to implement €4bn Budget savings for next year.

Mr Cowen said he would welcome ideas from the Opposition but added: "As regards this question of a national Government, I don't see it relevant to our present situation."

The Labour Party has dismissed calls for a national alliance as a desperate attempt to keep Fianna Fáil in power.