By Steve Bargeton, political editor

THE FRONT-RUNNER to become the next leader of the Scottish Liberal Democrats yesterday said he would not rule out going into government with the SNP after the Holyrood elections.

Outgoing leader Jim Wallace has consistently ruled out a coalition with the nationalists if they insisted on a referendum on independence.

But announcing his leadership bid yesterday transport minister Nicol Stephen said he would not rule out any options.

In what would be a major shift of position for the Lib Dems he said, “I don’t rule out any options for the future but we will go into the elections in 2007 as an independent party, with our own manifesto and policy priorities.

“They will be Liberal Democrat priorities and we want to win as many votes as we can and as many seats as we can because the more seats we have the more influence we will have in that Parliament and the more opportunity there will be to deliver Liberal Democrat policies and that’s what is important to me.

“I think it’s very important that before we go into an election we avoid where possible using words like ‘non-negotiable’ and to avoid concentrating too much on these technical coalition questions about what might happen after 2007.

“I’ve always felt that the Liberal Democrats have been strongest in a campaign when they focus on Liberal Democrat policies and the Liberal Democrat manifesto.”

Mr Stephen, accompanied by nine other Lib Dem MSPs at a Press conference in Edinburgh, said he expected “robust exchanges” with First Minister Jack McConnell over the remaining two years of the present Labour/Lib Dem coalition Executive.

“I get on very well with Jack McConnell, however we belong to different political parties and clearly we realise that there are certain responsibilities that go with that,” he said. “So from time to time we will have robust exchanges and discussions and that is important in coalition politics and I’m sure that is the way it will continue for the next two years.”

He also said he hoped there would be a contest for the leadership.

“I think it’s healthy for any political party that there should be a contest for its leadership. It is an opportunity to debate issues, to look to the future and I think it’s especially important for the Liberal Democrats because we’ve always been a party of our members—all of whom will have a vote in a leadership election.”

The most likely challenger is party health spokesman West Aberdeenshire and Kincardine MSP Mike Rumbles, an outspoken critic of the relationship with Labour. He has already said there should be no “coronation” of a sole nominee and may enter the contest as an “anti-coalition” candidate.

“I’m convinced that there won’t be a beauty contest or a coronation,” said Mr Rumbles. “I’m convinced that if we’re going to progress from a quarter of the vote in Scotland, we have to do so at the expense of the party that is currently the largest, and that’s Labour.

“What we want in a third term is to replace the council tax with a fair system based on ability to pay and to see greater powers for the Scottish Parliament—both vigorously opposed by Labour, so I can’t see that forming part of a third coalition agreement with Labour.”

The deputy finance minister Tavish Scott, who had been tipped to succeed Mr Wallace as leader, said yesterday he is to be Mr Stephen’s campaign manager.

Mr Wallace said a ballot for the leadership could be “healthy” but vowed he would not be endorsing any candidate.

When nominations open, a leadership candidate, who must sit in the Scottish Parliament, requires backing from at least one other MSP. They must also have endorsements from a minimum of five rank-and-file party members in each of at least six constituencies.

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