Sides working to achieve coalition deal

Negotiating teams from Fine Gael and Labour once more faced each across the table at Leinster House this afternoon as efforts continued to thrash out a coalition deal.

The talks reconvened at midday with delegates remaining mostly tight-lipped on their substance.

The Fine Gael team is led by finance spokesman Michael Noonan, Phil Hogan, who masterminded the historic election success, and combative front-bencher Alan Shatter.

Mr Hogan today said he was hopeful a framework could be in place by the weekend.

“People are working very hard to get a deal,” said Deputy Hogan, who described the talks as “intensive”.

However, he added, there was a lot of agreement on the policy front between the sides and progress was being made every day. well try to have it by the weekend

“Things are going well,” Mr Hogan said.

Labour negotiator Pat Rabbitte, speaking on his way into the talks this midday, was giving little away.

“We’re getting to the business end of the agenda now,” Deputy Rabbitte said.

“The discussions up to now have been workmanlike –that’s about all I can say.”

Labour’s negotiators include the party’s former leader Mr Rabbitte, deputy leader and finance spokeswoman Joan Burton, constitutional expert Brendan Howlin and policy director Colm O’Reardon.

Both sides will be briefed this afternoon by economist Colm McCarthy.

Mr McCarthy, author of the Bord Snip report, is continuing the economic briefings given by the Department of Finance, the National Treasury Management Agency and Central Bank Governor Patrick Honohan.

Both sides claimed the information confirmed the depth of the crisis facing the country.

But Fianna Fáil’s Dara Calleary accused the parties of softening up the electorate before abandoning their “cynical” election promises.

“Time and again throughout the election campaign we pointed out directly to Fine Gael and Labour that the promises they were making were unrealistic, uncosted and simply not feasible,” Mr Calleary said.

“Despite this, they continued to make ever more outrageous commitments which they were never going to be in a position to deliver.

“What they are attempting to do now is blame others, claim they didn’t know how acute the crisis was, and manage expectations as they prepare to backslide from their Five Point Plan and the range of other commitments.”

The negotiating teams have also gone head to head on their respective health and education policies since formal talks began on Tuesday.

Under pressure from Europe, the two sides have set the end of the week as a deadline to secure a stable pact and programme for government.

The negotiations at Government Buildings are complex, with the parties at odds over the length of time it will take to turn around the budget deficit, tax, public sector cuts, water charges and how to tackle bondholder responsibility for banking debts.

Labour is under pressure not to strike a deal from both its youth wing and the Unite trade union, which has called on the party to back away from joining with the centre-right Fine Gael and form a strong left-leaning opposition.

Colm Lawless, Labour youth national chairman, urged members to vote against any Programme for Government at the party’s special delegate conference, pencilled in for Sunday.

“In serving the national interest, Labour can provide the robust and necessary opposition to keep Fine Gael in check,” he said.

A quick deal is needed as Ireland faces a series of challenging hurdles linked to its multibillion-euro bailout loans from the International Monetary Fund and Europe, and the banking crisis.

The parties are also aiming to put a deal on paper before the Dáil sits again on March 9.

It will have to be signed off by Labour’s special delegate council before the two sides can agree.

Fine Gael leader Enda Kenny is due to travel to Helsinki tomorrow for a meeting of the European People’s Party, with which Fine Gael is affiliated.

The contacts are intended to open the door for a charm offensive and garner support to renegotiate the €85bn loans.

Labour leader Eamon Gilmore will meet left-leaning European colleagues separately tomorrow.

Thrashing out a coalition with like-minded independents is another option for Fine Gael.

But it could prove difficult given that a sizeable number of left-leaning TDs were elected at the weekend, while former stockbroker and Senator Shane Ross is also demanding a referendum on the IMF/EU loans.

Mr Kenny has vowed to force Europe’s hand on renegotiation of the deal, but has made no mention of a referendum.

Meanwhile Sinn Féin President Gerry Adams has announced he is taking over from Caoimhín O’Caoláin as the party's Dáil leader following his election in Louth.

Sinn Féin today unveiled its 14-strong parliamentary team, with Deputy Adams saying the party wants to be the voice of Opposition in Leinster House.

“Sinn Féin is here today having almost trebled our Dáil representation," said Deputy Adams.

“We will continue to change the course of Irish politics and move towards a united Ireland and a new Republic built in the interests of the citizens.”