First shots in battle of the coalitions

THE first concrete steps to provide an alternative coalition in the next general election sparked a combative response from the Government parties yesterday.

Yet striving to maintain peace in his own party before the upcoming reshuffle, Taoiseach Bertie Ahern told Fianna Fail TDs and Senators that he may create a third tier of Ministers.

FF and the Progressive Democrats scoffed at the announcement that Fine Gael and Labour are to form a formal coalition to challenge for Government in the next election.

Despite nervousness within the Government since the disastrous June elections, Mr Ahern downplayed the significance of the new alliance announced by Enda Kenny and Pat Rabbitte in Mullingar yesterday, insisting his Government's prudent policies would not bankrupt the country.

"I've seen pacts between Fine Gael and Labour come and go and I've been there myself to pick up the pieces," he said.

Before highlighting the policy differences between the opposition parties, Minister for Foreign Affairs Brian Cowen sarcastically joked that if the pact was restricted to Mullingar it wouldn't be too bad.

Minister for Justice Michael McDowell, in a similar vein, said there was a lot of selective amnesia about the last election and FG's policies in particular.

Nevertheless, Mr Kenny and Mr Rabbitte committed to putting a joint strategy for an alternative government to the electorate before the next election.

"I feel very strongly that it is necessary to [do this] before the next election," Mr Kenny said.

As a prelude to this, FG and Labour will have vote management pacts during forthcoming by-elections.

In Inchydoney, Co Cork, Mr Ahern told his parliamentary party that he had 27 positions to allocate in the reshuffle 12 Cabinet positions and 15 Junior Ministries and would reward loyalty and hard work.

In a move regarded as providing a potential consolation prize for those left out, Mr Ahern floated the idea of creating other Government positions.

Inspired by British Prime Minister Tony Blair, Mr Ahern is thinking about introducing Parliamentary Private Secretaries a rank below Cabinet Ministers and Junior Ministers.

Meanwhile, Mr Ahern insisted that the Government's priority will be a fairer society now that there are substantial resources to tackle health, disability, social housing and community employment schemes.

"We have spent €11.25bn on social welfare that has not resolved all the difficulties but the spare resources in the next Budget will be targeted at the socially excluded," Mr Ahern added.

Asked if the next Budget will focus on tax cuts or increasing social spending, Mr Ahern said: "We will try to keep taxes low but also help those most in need when we have spare resources."

The keynote speaker at the FF meeting was CORI Justice Commission spokesman Fr Sean Healy who gave a list of demands to tackle social exclusion.

Fr Healy said he was pleased with the response and hoped for substantial social welfare improvements in Budget 2005.

His demand for a €14 hike in social welfare payments got a favourable response. "But the proof of the pudding will be in the eating," Fr Healy added.