Irish people have grown accustomed to choice in all aspects of all their lives, and it should be no different when it comes to competing political philosophies.

I believe that the Irish voting public should have the widest possible range of political options to choose from at election time. In my view our political system has been enriched considerably by the arrival on the scene in recent years of parties like the Greens, Democratic Left and, of course, the Progressive Democrats.

Now, there is a real threat to the diversity of Irish politics and questions are being raised about the viability of the smaller parties, including the Progressive Democrats.

I can see why. The last 15 months have been the most difficult since the party was founded. A terrible general election result was followed by a loss of support as we were perceived to lose our identity in government.

Loss of identity is a risk you run when you participate in a coalition government. We have sought to work the current arrangement in a reasonable and constructive way in a spirit of partnership. We have won on some issues; we have lost on others.

That's how coalitions work. This is not a rerun of the 1989-92 coalition. Neither, for that matter is it a rerun of the 1992-94 coalition, or the 199497 coalition.

We haven't just lost support since we entered coalition - we have lost key people as well.

The departure of Michael McDowell, one of the finest parliamentary performers of recent years, was a major blow to the party in government.

Perception is now almost as important as reality in Irish politics and the Progressive Democrats have suffered from that. We have allowed ourselves to become pigeonholed as unreasonable and uncaring, despite a track record which suggests otherwise.

On behalf of the Government, Bobby Molloy, for example, is putting the biggest funding package ever into the social housing programme, while Liz O'Donnell is delivering the largest development aid budget in the history of the State.

So, is there a future for the Progressive Democrats? Let me put the question another way: is there a future for a liberal party in Irish politics?

The Progressive Democrats is a liberal party. As a liberal party we bring our own distinctive set of solutions to Ireland's political problems.

We believe in fighting social exclusion by encouraging economic participation. In other words, the best way to tackle poverty is to help people find real jobs.

We believe in reducing the burden of taxation on all those who work for a living and we regard this as a key political and economic priority.

We believe in promoting competition and maximising consumer choice, and in using the privatisation process to reduce the direct involvement of the State in commercial activities. The State's role should be to regulate, not operate.

We believe in addressing the social causes of crime; but we also recognise that people who commit crimes are responsible for their own actions and that the State has a firm duty to protect its citizens from criminals.

We believe that Ireland's place is very definitely in the alliance of liberal and democratic states that is the European Union, and we call for a real debate on how this State can best contribute to the defence of that Union.

We believe in promoting tolerance and respect for minorities. To this end, we have supported the decriminalisation of homosexuality; we have campaigned for citizens to have access to family planning and divorce; and we have worked consistently for a solution to the Northern Ireland problem that is based on parity of esteem and equality of treatment for both communities.

I am convinced that Ireland does need a liberal party and the Progressive Democrats can fill that role.

The Irish political landscape has changed dramatically in the 1990s. Eight years ago who would have thought that Fine Gael would go into government with Proinsias De Rossa; or that Fianna Fail would campaign for the removal of Articles 2 and 3 of the Constitution; or that the Labour Party would come out in favour of privatisation; or that Sinn Fein would sit opposite Ian Paisley in a Northern Ireland Assembly?

The Progressive Democrats have to change too. We have to demonstrate the relevance of our message to the Irish people and this is what I sought to do in a speech which I delivered in Cork on Friday last.

I put forward a coherent, three-pronged strategy aimed at combating social exclusion, easing the pressures in the labour market and sustaining our impressive record of economic growth.

First, I want to see the State making a real effort to help those who are out of work into education, training and jobs. I believe that the government has a responsibility to help the unemployed; equally, I believe that the unemployed have a responsibility to take up reasonable offers that are made to them.

Second, I want the introduction of a national minimum wage, from April 2000, to ensure that it is always worthwhile for a person to take up a job.

Third, I want a substantial package of tax reforms in the next Budget to be targeted at those on low-to-modest incomes, a package so radical that it effectively transforms the economics of working in this State.

We must offer a liberal alternative to the Irish electorate. We must put forward a liberal vision of Ireland's future as we move into a new millennium.

Starting with next year's local elections, we must involve a new generation of young people in politics, a generation that shares that liberal vision. Provided we can do that, I am convinced that the Progressive Democrats will continue to play an important role in Irish politics.

Mary Harney is Tanaiste and Leader of the Progressive Democrats