The Fine Gael Labour coalition government has collapsed following disagreement over budget proposals.

At a press conference at Iveagh House in Dublin, Taoiseach Garret FitzGerald announced that he would ask the President to dissolve the Dáil and an election would take place on 17 February.

The government then launched its election campaign by announcing some measures from the budget.

In studio Economics Correspondent Liam Cahill outlines some of these budget measures.

Interview with Minister for Finance and Public Service, John Bruton TD, about the Labour Party resignation and the draft Fine Gael budget.

Interview with Fianna Fáil leader Charles Haughey arriving at Leinster House comments on the election and says that Fianna Fáil will be hoping for an overall majority.

Reporter Caroline Erskine outlines the day’s events as former Tánaiste Dick Spring and Minister for Foreign Affairs Peter Barry TD made their way into the cabinet meeting.

Peter Barry would replace Dick Spring as Tánaiste.

As the Labour deputies left the last cabinet meeting of the coalition government Dick Spring read a statement to the press.

An Taoiseach Dr Garret FitzGerald pays tribute to his former Labour partners at a press conference before going to the President so that the new ministers could receive their new seals of office.

Back at Leinster House, Dick Spring outlined Labour's reasons for going.

Seán Duignan, speaking from Leinster House, describes the reaction to the collapse of the government, the budget, and the pending general election.

The report includes an overview of the conflict within the coalition government and the resulting collapse.

The reporters are Liam Cahill, Patrick Kinsella, Caroline Erskine and Seán Duignan.

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