Labor, Likud teams begin talks on forming coalition gov't

Likud and Labor negotiation teams met late on Saturday, after earlier the Labor Party Central Committee approved a measure that allows party leadership to enter coalition talks on forming a unity government with the Likud.

Representing Labor at the talks are MKs Benjamin Ben-Eliezer, Dalia Itzik, Haim Ramon and Peres' aide Yoram Dori. Likud is represented by Minister Tzipi Livni, MK Gideon Sa'ar and attorney Yoram Raved.

Labor MK Dalia Itzik said Friday that her party would insist on receiving key portfolios, like Education, National Infrastructure and the Interior Ministry.

Speaking to his party's central committee, Labor chairman Shimon Peres said, "The question that will stand before each of us in the coming six months or year is whether to hold elections, to hold primaries, or to take action to advance the peace process." According to Peres, party voters expect Labor to prefer the good of the country over "other things."

Peres said that the main reason Labor was joining the government was to advance the disengagement plan, adding that "if there will be no disengagmenet, Labor will leave the government."

The Central Committee decided not to modify or change the makeup of the faction's negotiating team. Some of the party members felt that the teamshould be modified or replaced. A number of party members requested that former finance minister MK Avraham Shochat be added to the negotiation team, so as to deal with economic aspects of the negotiations.

Shochat led a group of nine MKs demanding that several conditions be set before entering coalition talks with the Likud party, among these more funding for medicines, an annullment of any economic sanctions which may harm senior citizens, a change in policy in rural regions and more funding for highter education and cash strapped regional councils. Shochat is also seeking a coalition agreement which would be valid until the disengagement plan is carried out, whereas Peres favors a coalition agreement which would keep Labor in the government until the next scheduled elections, in the end of 2006.

At the meeting, Peres expressed opposition to presenting the Likud with conditions, but said that Labor would not waive its principles. "We aren't against a modern market, we favor a market economy, but not on account of the poor, the elderly, and the children."

Shochat criticized Peres' stance, saying, "Can someone tell me that the piggish capitalism is gone? If we receive NIS 100 million for one clause or another, will the piggish capitalism be gone?" Most committee members eventually adopted Peres' position.

Itzik: Labor will demand Education, National Infrastructure and Interior portfoliosMeanwhile, Labor faction chairwoman Dalia Itzik said Friday that her party wanted to have impact in any future government, and would demand the Education, National Infrastructure and Interior portfolios, Israel Radio reported.

Both National Infrastructure and the Interior Ministries were held by Shinui ministers until their party was ejected from the government. The Education Ministry, however, is currently held by Likud Minister Limor Livnat.

Prime Minister Ariel Sharon telephoned Peres, Shas leader Eli Yishai and United Torah Judaism leader Yaakov Litzman on Friday morning and invited the three to hold coalition talks, Israel Radio reported.

The Likud Central Committee on Thursday authorized Sharon to form a new government with Labor, Shas and United Torah Judaism, handing Sharon his first major victory after months of defeats in various party forums.

The Likud convention, which vetoed Labor's entry into the coalition just four months ago, approved it Thursday night by a majority of 62 percent to 38 percent, or 1,410 votes to 856. Turnout was high, with 77 percent of the convention's approximately 3,000 members voting. Among Likud MKs, the vote was 29-9 in favor of Sharon's proposal.

Negotiations with all three parties are expected to go into high gear on Sunday, and Sharon hopes to present a new government to the Knesset in about 10 days.

An agreement with UTJ is also expected to be finalized quickly, since the main points were worked out in August. MK Moshe Gafni, UTJ's chief negotiator, said Thursday that the party would exert heavy pressure on Sharon to bring in Shas as well, but would not present an ultimatum.

A deal with Shas is considered more complicated, given its demands for a major overhaul of the government's economic policy. And failure to include Shas could provide an opening for Sharon's opponents, who plan to demand that the convention reconsider Thursday's decision if Shas remains outside. A government without Shas has much less support in the convention. But while Shas, like UTJ, also opposes Sharon's disengagement plan, Gafni said that he did not see this as a problem, because the plan has been approved by both cabinet and Knesset and is therefore a done deal.

Though the day ended with a resounding victory for Sharon, his entourage spent much of it fretting that turnout would be low, making defeat more likely. At 3 P.M., for instance, only 24 percent of convention delegates had voted half the number that had voted by that hour in elections for party institutions three weeks ago.

In an effort to get out the vote, Sharon met with and telephoned dozens of key party activists and also broadcast his message relentlessly via the media: "Go and vote." If the convention fails to approve a government with Labor, he warned, the only alternative will be new elections, in which the Likud will be liable to lose a substantial number of the 40 Knesset seats it now holds. Moreover, he said, 2005 has the potential of being a year of great accomplishments, and elections will prevent this potential from being realized.

But despite his worries over the turnout, Sharon entered the lists with one great advantage: With the exception of Minister Natan Sharansky, a newcomer to the Likud, every Likud minister had publicly backed his call for establishing a government with Labor, Shas and UTJ. In all of the previous convention votes, which he lost, he was opposed by several politically powerful ministers. "With support like this, it would be very strange if we lost," said one Sharon associate.

And the Tel Aviv District Court removed another obstacle Thursday morning when it rejected a petition by two disengagement opponents seeking to put an alternative resolution on the convention's ballot.

	Ariel Sharon casting his ballot in the Likud internal vote on coalition talks with Labor. (AP)