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Labour MPs to warn on Plaid deal Labour MPs to warn on Plaid deal
(about 1 hour later)
First Minister Rhodri Morgan will be warned by Labour MPs against "rushing and blank cheques" in Welsh assembly coalition talks with Plaid Cymru.First Minister Rhodri Morgan will be warned by Labour MPs against "rushing and blank cheques" in Welsh assembly coalition talks with Plaid Cymru.
There remains strong opposition to any offer of a referendum on giving the assembly full law-making powers to keep Labour in office in Cardiff Bay.There remains strong opposition to any offer of a referendum on giving the assembly full law-making powers to keep Labour in office in Cardiff Bay.
Welsh Secretary Peter Hain has called for a special Labour conference to be held on any coalition deal with Plaid. Welsh Secretary Peter Hain and Labour AMs want a special party conference held to consider any deal with Plaid.
The BBC understands that Mr Morgan is comfortable with that suggestion. The party's Welsh executive is expected to meet soon to consider the calls.
It is the only body which can call such a conference.
A Labour spokesperson said there was "unanimous support" for holding one when the party's assembly group met on Wednesday morning.
Mr Hain has previously ruled out the possibility of a Lab-Plaid coalition.Mr Hain has previously ruled out the possibility of a Lab-Plaid coalition.
The BBC understands he thinks it would be "unthinkable" not to consult party members on such plans.The BBC understands he thinks it would be "unthinkable" not to consult party members on such plans.
Mr Hain believes it would be premature to say whether or not he supports a deal as there is no specific deal on offer at the moment.
In the run-up to the Welsh assembly election campaign, Mr Hain told the House of Commons he ruled out a coalition with Plaid and said he did not think Labour's grass-roots would accept it.In the run-up to the Welsh assembly election campaign, Mr Hain told the House of Commons he ruled out a coalition with Plaid and said he did not think Labour's grass-roots would accept it.
But initial proposals have been exchanged between the two parties ahead of detailed negotiations on a possible deal which are expected to begin on Thursday afternoon.But initial proposals have been exchanged between the two parties ahead of detailed negotiations on a possible deal which are expected to begin on Thursday afternoon.
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.
Mr Morgan will meet the Welsh group of Labour MPs on Wednesday evening to explain the merits of any deal with their opponents.Mr Morgan will meet the Welsh group of Labour MPs on Wednesday evening to explain the merits of any deal with their opponents.
A sea change on a par with a Labour coalition with the Tories in London Former UK Labour ministerA sea change on a par with a Labour coalition with the Tories in London Former UK Labour minister
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.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. "There must be no rushing and no blank cheques," he added.
"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.The source said it would be "crazy" to offer a timetable for a referendum that might be lost.
Mr Hain will not be at the meeting but has been spending part of the day ringing MPs to ensure that "all lines of communication are kept open."
Traditional enemiesTraditional enemies
He was 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).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).
It's not just about a referendum, it's about a programme for government Ieuan Wyn Jones, Plaid Cymru leaderIt's not just about a referendum, it's about a programme for government Ieuan Wyn Jones, Plaid Cymru leader
"There is an excitable atmosphere about this and the Labour Party needs to move forward in a united way". One former minister warned there was no degree of enthusiasm for a Plaid coalition.
A former minister warned there was no degree of enthusiasm for a Plaid coalition.
"They are our main opponents in Wales," he said."They are our main opponents in Wales," he said.
But he added that he would tolerate a coalition if it was endorsed by Welsh Labour as a whole.But he added that he would tolerate a coalition if it was endorsed by Welsh Labour 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".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.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.Plaid's 15 AMs backed the Labour discussions at a meeting on Tuesday night.
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 that 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".
The two largest parties in the Senedd may form a coalitionBut he added: "It's not just about a referendum, it's about a programme for government.The two largest parties in the Senedd may form a coalitionBut 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".
The development is one of a series of twists and turns in Cardiff Bay since the 3 May election.The development is one of a series of twists and turns in Cardiff Bay since the 3 May election.
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".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".
Welsh Conservative leader Nick Bourne said: "Our position remains unchanged. We think Wales will be best served by a non-Labour alternative."Welsh Conservative leader Nick Bourne said: "Our position remains unchanged. We think Wales will be best served by a non-Labour alternative."