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Labour-Plaid deal talks to start Labour MPs to warn on Plaid deal
(about 2 hours later)
Discussions are due to begin between Plaid Cymru and Labour on forming an historic Welsh assembly coalition. First Minister Rhodri Morgan will be warned by Labour MPs against "rushing and blank cheques" in Welsh assembly coalition talks with Plaid Cymru.
Discussions are beginning between the parties on striking an historic deal.
There appears to be a growing acceptance among the MPs that a deal with Plaid may be Labour's only chance of staying in office in Cardiff Bay.
But there remains strong opposition to any offer of a referendum on giving the assembly full law-making powers.
Plaid AMs have given unanimous support for the talks with Labour, and are understood to have been guaranteed a referendum on full assembly powers.Plaid AMs have given unanimous support for the talks with Labour, and are understood to have been guaranteed a referendum on full assembly powers.
First Minister Rhodri Morgan will meet Welsh Labour MPs later to explain the merits of a deal with their opponents. A sea change on a par with a Labour coalition with the Tories in London Former UK Labour minister
Plaid leader Ieuan Wyn Jones, who is also talking to Tories and Lib Dems, said parties must set aside rivalries. Mr Morgan will meet the Welsh group of Labour MPs on Wednesday evening to explain the merits of a deal with their opponents.
One senior MP said: "We want to know what he has put on offer, what discussions he has had on policy, we want the maximum consultation and no rushing.
"If the main dividing line is between the Conservatives and everyone else it makes sense to explore if there is sufficient common ground to form a coherent administration.
"But there must be no rushing and no blank cheques".
The source said it would be "crazy" to offer a timetable for a referendum that might be lost.
Welsh Secretary Peter Hain will not be at the meeting, but is spending part of the day ringing MPs to ensure that "all lines of communication are kept open."
Traditional enemies
Mr Hain has been trying to reassure MPs that suggestions that a referendum would be offered as part of a deal were speculative.
A UK government source said: "There are some things that are unpalatable but there is the political reality of having 26 seats (five short of a majority).
"There is an excitable atmosphere about this and the Labour Party needs to move forward in a united way".
It's not just about a referendum, it's about a programme for government Ieuan Wyn Jones, Plaid Cymru leader
A former minister warned there was no degree of enthusiasm for a Plaid coalition.
"They are our main opponents in Wales," he said.
But he added that he would tolerate a coalition if it was endorsed by the Welsh Labour Party as a whole.
He said an alliance with Plaid was "a sea change on a par with a Labour coalition with the Tories in London".
Plaid leader Ieuan Wyn Jones, who is also talking to Tories and Lib Dems, said parties must set aside their rivalries.
Mr Jones confirmed that cabinet seats for his party would be part of any deal with Labour.Mr Jones confirmed that cabinet seats for his party would be part of any deal with Labour.
Plaid's 15 AMs backed the Labour discussions at a meeting on Tuesday night, which could see a groundbreaking first deal between two parties which have been traditional enemies. Plaid's 15 AMs backed the Labour discussions at a meeting on Tuesday night.
My aim is to make sure that by the summer there will be a stable government here in Cardiff Bay Ieuan Wyn Jones, Plaid Cymru leader Mr Jones told BBC Radio Wales that Labour had offered "fresh information that is interesting and we need to explore that now".
Mr Jones told BBC Radio Wales Labour had offered "fresh information that is interesting and we need to explore that now".
He said it was "difficult to go into detail" about what was on the table, but said his concern was a deal that was "in the best interests of the people of Wales."He said it was "difficult to go into detail" about what was on the table, but said his concern was a deal that was "in the best interests of the people of Wales."
However, he said a referendum on a full parliamentary system would be a "key demand".However, he said a referendum on a full parliamentary system would be a "key demand".
But he added: "It's not just about a referendum, it's about a programme for government.But he added: "It's not just about a referendum, it's about a programme for government.
"You can't have a four-year programme of government round a single issue... it has to be about the total package.""You can't have a four-year programme of government round a single issue... it has to be about the total package."
Stable governmentStable government
Mr Jones said it was about "securing a good deal for the people of Wales".Mr Jones said it was about "securing a good deal for the people of Wales".
"My aim is to make sure that by the summer there will be a stable government here in Cardiff Bay," he said."My aim is to make sure that by the summer there will be a stable government here in Cardiff Bay," he said.
Labour said Mr Morgan would be in touch with Mr Jones on Wednesday morning "to discuss an agenda for the talks, to set out teams for the negotiating process and to set out a timetable".Labour said Mr Morgan would be in touch with Mr Jones on Wednesday morning "to discuss an agenda for the talks, to set out teams for the negotiating process and to set out a timetable".
The development is the latest in a series of twists and turns in Cardiff Bay since the 3 May election left Labour the largest party with 26 seats, but five seats short of an outright majority. The development is the latest in a series of twists and turns in Cardiff Bay since the 3 May election.
Former Ceredigion Plaid MP Simon Thomas said it was exciting that there seemed to be a change in Labour ranks. Mike German, leader of the six Liberal Democrats in the assembly, said Labour were "desperately keen on making sure they hang on by their fingertips to power".
First Minister Rhodri Morgan may have to share power with Plaid Welsh Conservative leader Nick Bourne said: "Our position remains unchanged. We think Wales will be best served by a non-Labour alternative."
"I think the one thing it will raise with many Plaid members is serious questions about what Labour's motives are and what we can get out of this for the benefit of all of Wales and not just for the benefit of parties concerned," he said.
Mike German, leader of the six Liberal Democrats in the assembly, said he "wouldn't have expected anything different from Labour".
"They get desperately keen on making sure they hang on by their fingertips to power," he said.
He said Plaid had to decide whether its aspirations would be better met by a coalition with Labour or by a rainbow alliance with his party and the 12 Conservative AMs.
"Given the support there is for the three-way coalition they will probably want to continue that discussion and I suspect... they are going to have to make a choice between one or the other.
"We will know the answer to that by the end of the week, but I think it is a lot to ask of someone to give up the chance to be in charge."
Hang on
Welsh Conservative leader Nick Bourne said the latest development did not come as a surprise.
"We always knew there would be more twists and turns in efforts to secure a stable, majority government in the National Assembly.
"We also know that Rhodri Morgan and his Labour colleagues will do and say anything to hang on to power," he said.
"Our position remains unchanged. We think Wales will be best served by a non-Labour alternative."
The latest move comes just over two weeks after Rhodri Morgan was installed as first minister leading a minority administration.The latest move comes just over two weeks after Rhodri Morgan was installed as first minister leading a minority administration.