MANY of the best governments in the State had been minority administrations, Mr Bertie Ahern said after his election as Taoiseach.

"This will be the first to be both a minority Government and a Coalition. The situation will require the incoming Government to pay particular attention to views expressed in the Dail, and we will try to work constructively with other parties, and, of course, the Independent members, wherever possible."

He said the outgoing Taoiseach and his colleagues had every right to look back with satisfaction and pride on many aspects of their stewardship during their comparatively short 2 1/2 years in office.

"While the breakdown in the ceasefire was a serious setback useful rules, structures and guidelines have been put in place to advance the peace process, and the new procedures for dealing with decommissioning announced yesterday should prove, I hope, to be a most positive step towards inclusive all party talks.

"Throughout the last five years, the Tanaiste and his Department have played a particularly special and important role, spanning two governments and providing continuity, and that deserves proper acknowledgment.

"A new start has been made in tackling crime, particularly since the tragic murder of Veronica Guerin, whose anniversary occurs today." This work must be carried on to the next stage in a coordinated and comprehensive way.

The outgoing Taoiseach, Mr Bruton, wished Mr Ahern well, noting that he was coming into office in exceptional economic circumstances for the State. "Never before have we seen such a rapid growth in employment. Never before have mortgage and interest rates been at such a low level."

The new Government was also coming into office when the foundations had been laid for major moves forward towards a settlement in Northern Ireland. "There is now a talks process in being which is open to all, and the principal difficulty of decommissioning has been overcome.

Earlier, proposing Mr Bruton for Taoiseach, the outgoing Tanaiste, Mr Spring, said he had been an outstanding Taoiseach.

"His contribution to policy relating to Northern Ireland will stand the test of time. Indeed, it is a mark of the man that up to yesterday he has worked to sow the seeds of an inclusive peace and a fair settlement.

Seconding Mr Bruton, the leader of Democratic Left and outgoing minister for social welfare, Mr De Rossa, said that after 2 1/2 years in government with him his respect for Mr Bruton had increased and his public stature had grown.

Proposing Mr Ahern for Taoiseach, Mr David Andrews (FF, Dun Laoghaire) said the people expected the leader of the next government to be fair, honest and decisive.

"The leader the people have chosen is Mr Bertie Ahern TD. He has been a member of this House for a long time. I know him to have the iron in his soul to be a great leader and to make this country of ours proud."

Seconding Mr Ahern, the party's deputy leader, Ms Mary O Rourke, said there was no doubt that in the challenging years ahead, both nationally and internationally, "a person with the calibre and character of Bertie Ahern is someone that this country can justly be proud of. He has both vision and stamina, but most of all he has understanding."

The PD leader, Ms Mary Harney, said she intended to prove over the next few years that nurses, teachers and gardai had nothing to fear. She wanted to see a dynamic public service serving the State.

She paid tribute to the outgoing government, adding that all ministers had worked hard, particularly the Taoiseach, the Tanaiste and the Minister for Social Welfare. She admired the fact that right up to the end the Taoiseach and the Tanaiste had sought to have peace restored in Northern Ireland.

Earlier, Mr Bruton was defeated by 87 votes to 75. He was supported by Fine Gael, Labour, Democratic Left and Mr Lowry, Independent. He was opposed by Fianna Fail, Progressive Democrats, Mr Healy Rae, Ms Fox, Mr Blaney, Mr O Caolain, Mr Gregory and Mr Higgins. The Green Party and Mr Gildea abstained.