The new leader of the Progressive Democrats, Senator Ciaran Cannon, has said the local elections would the litmus test in deciding the future of the party.
Senator Cannon was elected this morning after a ballot of party members.
The 42-year-old will start a national tour next Monday during which he intends meeting PD members and members of the public.
He says the best policy is created by the people it impacts on. New party policy will not be unveiled until a broad consultation takes place.
Ciaran Cannon has not ruled out a party name change but says it is not an issue for him at the moment.
This morning Senator Cannon said the local elections in 2009 would be crucial in deciding the future of the party.
He said if the party doesn't perform well, the PDs would have to take serious stock of what the future holds.
The new leader said Ireland needs to forge ahead and continue to develop world-class infrastructure - he said if the country needs to borrow to do this, then it must.
Cannon can handle burden - Harney
The new PD leader said the borrowings should not be considered national debt but an investment in our children's future.
He has described the task of rebuilding the PDs as a daunting one.
Mr Cannon said there was passion, commitment, talent and knowledge within the PDs' ranks to stage a big comeback.
He said the party was willing to take up this challenge and he would continue the tradition of reform. He also said the party's willingness to take risks would stand to it.
The outgoing PD leader gave Senator Cannon some advice - Mary Harney said he would need to think on his own, she said members do not always take a party in the right direction.
She wished Senator Cannon well and said it was the first time a party leader came from the Seanad.
She said the burden of leadership would be a heavy one but one which the newly appointed senator could handle.
Mr Cannon narrowly beat fellow Senator Fiona O'Malley in the race to succeed Mary Harney, by 51% to 49%. The result was announced just after 5am this morning.
Under the party's electoral college system, the four members of the parliamentary party had 40% of the vote between them, while around 40 councillors and members of the National Executive had 30%, and the 1,200 party members had the remaining 30%.
Senator Cannon was elected to Galway County Council in June 2004, representing Loughrea, and contested Galway East in the last General Election, after which he was one of the Taoiseach's nominees to the Seanad.
He has worked in the planning departments of Dublin and Galway County Councils, and is the head of the Irish Pilgrimage Trust, a charity caring for children and young people with disabilities.
The new leader faces a formidable challenge in rebuilding a party shattered by last year's General Election result, and facing into crucial local elections in just over a year's time.
