Negotiating teams from Fianna Fail and the Progressive Democrats are to meet today for the first of a series of meetings to review the programme for government.
The two parties will exchange written policy documents which will form the basis for a revised programme that could last into 2002.
The revised document is expected to emphasise transport, housing and childcare. The government parties are also understood to agree on timetables for further flotations of semi-state companies; a weekly old age pension of £100 by the end of next year; and a commitment to lower the top rate of income tax to 40 per cent over the next two budgets.
A Government source said last night the review would set out a new agenda for the next 21/2 years. "We will be looking at the order of our priorities, which obviously have changed since the 1997 general election. We will be seeking to set out our agenda in a fresh way," he said.
Fianna Fail Cabinet members have each prepared policy priorities within their respective Departments which form the basis of their review document. The party will be represented at the review talks by the Minister for Social, Community and Family Affairs, Mr Ahern, and the Minister for the Environment, Mr Dempsey.
The Progressive Democrats' negotiating team, led by Ms Liz O'Donnell and Mr Bobby Molloy, has prepared a document which seeks to place timetables for the implementation of all future policy proposals.
The PDs are seeking a commitment to have private-sector investment in all major infrastructure projects including new DART-style commuter rail systems in Limerick, Galway, Waterford and Cork.
The document is understood to include a proposal to liberalise taxi-licensing laws and facilitate competition for Dublin Bus.
Discussions are expected to begin next week between the Government Chief Whip, Mr Seamus Brennan, and the four independents who have deals to give Dail support to the Coalition.
The independents - Ms Mildred Fox, Mr Harry Blaney, Mr Tom Gildea and Mr Jackie HealyRae - have each indicated to Mr Brennan the commitments they will require in exchange for continued support of the Government.
The Coalition plans to publish a revised version of the 1997 programme for government, An Action Programme for the Millennium, by the end of the month.