Labour delegates back plan for coalition government with Fine Gael

Labour party delegates have backed a proposal to enter government with Fine Gael, and to back the Programme for Government hammered out this week.

The parties will meet for the first session of the 31st Dáil on Wednesday.

The programme promises no tax hikes or cuts in welfare, including child benefit, but there will be between 21,000 and 26,000 public sector job cuts.

The Department of Finance is also to be split in two, with a Minister from each party taking responsibility for one portfolio of public spending and reform, and another for economic planning and the banks.

Labour's Tommy Broughan was the only member of Labour's 37-strong parliamentary party to speak against the motion today, with others supporting it:

"The replacement of a Cowen-Lenihan-Honohan economic and fiscal straightjacket by a silimar Kenny-Noonan-Honohan straightjacket which we will also have to wear and support is not in the interests of the Irish people," said Mr Broughan.