This particular power that Afleitch is suggesting is even less powerful than the dismissal of the Government... it is asking the House to form a new Government. The Prime Minister, if he loses the vote, is not expelled from Parliament, it just gives the right of parties to negotiate and form a new Government in the House without going to an election (in other words... if there were three parties forming the whole of the Parliament, with one in coalition with another to form Government, and then it broke off and wanted to form a coalition Government with the other party instead).
Effectively that's what I am hoping for. If a government is failing, or it's authority is in question the President can ask the House to vote on whether they have 'confidence' in the current administration. If the government is strong enough it can win this and continue in government. However if it is not, and looses the vote then the government is dissolved.
The next part depends on elections. If they are fixed in the calendar then those elected remain 'seated' but a new government has to be formed. This may be by an opposing party or a new coalition. It may even involve the ruling party but with a new Prime Minister (it depends on the reasons for the no confidence vote - whether it's against government, party or the Prime Minister ) However if fresh elections can be called, then the PM may ask the President to dissolve Parliament and call new elections. The public may re-elect the government and may have a new mandate or they may vote them out of office vindicating the No Confidence Motion.
It's about coalition, collusion and calculation.
http://en.wikipedia.org/wiki/Parliamentary_dissolution