Fianna Fáil and the Progressive Democrats will seek to implement outstanding Programme for Government commitments urgently on the back of improving Exchequer figures, the Taoiseach has promised.
Speaking in Inchydoney, Co Cork, following a two-day meeting of the Fianna Fáil parliamentary party, Mr Ahern indicated that State borrowing would be more than €1 billion less than projected on Budget day.
"Public expenditure is well under control. The next phase is improving the services in areas that we were not able to do. We can now get on with that," he said.
Facing questions about the warning from the PD leader, Ms Harney, that she would quit office if the Government went on a spending spree, Mr Ahern, in a blunder that he immediately regretted, said: "She was asked a stupid question, and she gave a stupid answer."
Following this mistake, the Taoiseach, during an unscheduled press conference, repeatedly paid tribute to the work done by Ms Harney on the economy.
"Relations with the Progressive Democrats are excellent. I honestly believe that the relations with the PDs are better than at any time in the last seven years," he said.
At their own strategy review meeting in Dublin, the Progressive Democrats called on the Government to honour its commitment to recruit 2,000 extra gardaí, a move which is now expected before the next general election.
In a statement yesterday at the end of the two-day review, the party's TDs and senators said the Government should "speed up the implementation of the remaining commitments of the agreed Programme for Government".
Senator John Minihan listed priorities which mirrored those that emerged from Fianna Fáil's meeting as the Government parties seek to project a caring image, and to show a commitment to tackling social and economic disadvantage.
"The forthcoming budget must ensure that this extra money is targeted primarily at the areas of health, education, disabilities and justice." he said.
Issues the PDs wanted to be prioritised included "the need for a speedy resolution to difficulties in the area of special-needs assistants; a discussion document on childcare; the need to continue to reduce the tax burden on the lower paid and to take more people out of the tax net; infrastructural priorities; and the resources required to support the forthcoming disabilities Bill".
However, the PDs warned against major spending increases, saying they "would not be panicked into throwing away the recent economic gains".
In Inchydoney, Mr Ahern said: "Mary Harney and I are both people of social conscience. We are both from humble backgrounds, and so are our political parties. We will try to implement the policies to the best of our ability."
Insisting that both parties were ready to share power until 2007, the Taoiseach emphasised that targeted spending would be directed towards the poor, the disabled and community projects.
"When the resources are there, I don't think there is anyone advocating that those resources should go to the rich or just stay in reserves," he said.
Indicating that extra money would be spent on Community Employment Schemes next year, he said there were still significant issues to be resolved about the future shape of the programme.
Meanwhile, in a further sign that the Minister for Justice, Mr McDowell, is to relax the ban on children in pubs after 9 p.m. during the summer, the Progressive Democrats' statement said that "members of the parliamentary party expressed unease about the 9 p.m. ban on children in pubs in the summer months, and urged the Minister for Justice to extend the deadline to 10 p.m".
