John Osmond (Cardiff, IWA): Prompted, it seems, by Gordon Brown - worried that he might face two nationalist First Ministers before the summer is out, one from Wales as well as Scotland - Rhodri Morgan's minority Labour administration in Cardiff is dangling the prospect of a full-scale coalition with Plaid Cymru.
Speaking on BBC Wales's 'Dragon's Eye' television programme on Thursday evening, Labour's Health Minister Edwina Hart said she would be happy to sit in a Cabinet that included Plaid leader Ieuan Wyn Jones. Earlier in the week Plaid MP Adam Price, the party's director of elections who led policy negotiations with the Tories and Lib Dems for the so-called 'Rainbow Coalition', said the only chance of Plaid backing Labour would be if it was given Cabinet posts.
In addition, Plaid wants: a commitment that Labour campaign for a Yes vote in a referendum on a Scottish-style Parliament for Wales, to beef up the Assembly's powers; and a review of the controversial Barnett Formula which is the basis for the allocation of funds from Whitehall to Wales, Scotland and Northern Ireland (based on population rather than need, it is widely believed that the Formula under-funds Wales by a significant amount, as much as £500m to £1bn a year).
All this may be too much for the Welsh Labour Party, especially its Westminster MPs and many Valley activists who hate Plaid. The feisty Edwina Hart is regarded as being on the nationalist wing of the party, which is not as proportionately large as in Scotland. However, if it does not do a deal Labour faces the prospect of going into Opposition in Cardiff Bay before August. Plaid Cymru's National Council meets in early July to vote on the Rainbow option. Meanwhile, there is a growing mood amongst Plaid, Conservative and Lib Dem Members in the Assembly to move the Rainbow option sooner rather than later to gain power, and certainly before the summer recess, after which they fear the momentum may have passed.
