Coalition talks must resolve stadium differences

Talks between Taoiseach Bertie Ahern’s Fianna Fail and the Progressive Democrats (PDs) on the formation of the country's next coalition Government continued today.

As the second day of negotiations were held it emerged that a deal could be struck by the end of the week.

So far the two parties have discussed policy documents submitted by both sides but there were the potential stumbling blocks of tax cut proposals and plans for the privatisation of state companies.

Fianna Fail and the PDs, who shared power for five years in the last administration, also needed to resolve their differences over the building of a new national stadium.

Mr Ahern has strongly backed the plan for a Dublin stadium which is increasingly important for a joint Scottish-Irish bid for the 2008 European soccer championships.

But the PDs, led by Tanaiste Mary Harney, believe that the plans are too grand and the cost to the public purse could not be justified.

The two sides also need to thrash out the number of cabinet posts which will be given to the eight Progressive Democrats members, who are heavily outweighed by Fianna Fail’s 81 deputies.

The Fianna Fail team is headed by Foreign Minister Brian Cowen. The PDs delegates are lead by Attorney General Michael McDowell.

Proceedings were adjourned for a time at 11am today to allow for a meeting of the PDs.

Ms Harney was understood to have briefed the party on the progress of the talks.

No time limit has been put on the talks, but when asked if the talks would be over by the end of the week Mr Cowen said: ‘‘The Taoiseach and Tanaiste have expressed the hope that that will be the case, we will have to see if we can conclude it successfully by then.

He added: ‘‘There are issues about which we are still having discussions.’’

The talks, due to resume tomorrow, went ahead following final confirmation over the weekend of the final make-up of the Dail.

Fianna Fail fell just short of an overall majority in the 166-seat chamber.

Meanwhile, Fine Gael began a post-mortem on its election campaign after suffering massive losses.

Several senior party figures were among a third of party deputies to be unseated at the May 17 poll and leader Michael Noonan resigned as the scale of the defeat emerged. Party members gathered at a Dublin hotel where they began discussions on selecting a new leader.

The only declared leadership candidate so far is the member for Carlow/Kilkenny, Phil Hogan.