Three areas could prove contentious

NEWS: There are likely to be three main areas of contention between Fianna Fáil and the Progressive Democrats in possible future…

NEWS: There are likely to be three main areas of contention between Fianna Fáil and the Progressive Democrats in possible future coalition negotiations. These are the national stadium, tax and privatisation.

The stadium at Abbotstown is likely to be a primary source of disagreement. During the campaign the Attorney General, Mr Michael McDowell, characterised the Taoiseach's pet project as a "Ceausescu-era Olympic project".

In its manifesto, Fianna Fáil dropped its commitment to build the full Campus and Stadium Ireland project, pledging only to build a national stadium costed at €400 million.

The PDs, who reluctantly went along with the national stadium element of the project two months ago, had already come out strongly against it in their election manifesto, saying that it was "too costly". However, they have left themselves with room to negotiate.

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On tax, the PDs have committed themselves to reducing the top tax rate from 42 to 40 per cent. However Fianna Fáil sources say they do not want to give any commitment on taxes. If the state of the public finances improve, they may consider changes.

The PDs want to privatise the ESB, Bord Gáis, Aer Lingus and the ports of Dublin, Cork and Waterford, in order to fund, among other things, tax cuts.

However Fianna Fáil said it would approach the issue on a case by case basis, in partnership with all the stakeholders.