FIANNA Fáil’s Michael McGrath said there is now a “fighting chance” that a minority government will work after an agreement was passed last night.
Mr McGrath said that it was now up to Fine Gael to form a government after Fianna Fáil passed an agreement to facilitate a minority government.
Pictured is Fianna Fail Leader Micheal Martin TD, centre, with, from left, Michael McGrath TD, Jim O’Callaghan TD, Barry Cowen TD, Dara Cleary TD, Fiona O’Loughlan TD, Charlie McConalogue TD and Eugene Murphy TD before talking to the media at the Dail this evening. Photo: RollingNews.ie
The two parties published the full document of their deal last night after it was ratified by their parties.
As Fine Gael continues to meet with independent TDs, including Cork South West TD Michael Collins who is entering his third day of negotiations, Mr McGrath, Fianna Fáil’s Finance spokesperson, said that important policy concessions had been agreed.
Tackling the housing crisis was key to securing Fianna Fáil’s support. The deal also includes a loosely worded commitment that suggests that those who paid water charges could be refunded at some point in the future. However, there was very little clarity around this point today. It states: “We affirm that those who have paid their water bills to-date will be treated no less favourably than those who have not.”
Mr McGrath said concessions around housing and mortgages were crucial for Fianna Fáil. He said, “We have a number of very important concessions, like the mortgage interest relief which will be extended. That’s worth up to €1,800 a year for some couples who bought during the boom. That’s a major win for us.
“We have a commitment that we will tackle high variable rates, and protect the family home from vulture funds.
“Fine Gael resisted increasing supports for people in the rental sector, but we have an agreement to increase the rates of rent allowance and the Housing Assistant Payment (HAP). That’s something that we have been calling for, along with groups like the Simon Community, Fr Peter McVerry, and Focus Ireland. It’s not going to solve the housing crisis by any means, but if it is coupled with an accelerated supply of social houses, and measures to boost the housing supply, it could make a real difference,” he said.
In exchange for these concessions, Fianna Fáil has agreed to facilitate the government for up to three years, as long as its budgets are consistent with the document agreed in recent days. He said that Fianna Fáil had done its part in negotiations, and it was now up to Fine Gael to convince the independents.
He believes that it is likely that an agreement will be reached in the coming days, with Fianna Fáil abstaining from the vote to form a government, allowing Enda Kenny to become the first Fine Gael leader to serve two consecutive terms as Taoiseach.
He said that his party won’t play a part in the programme for government, but that the new administration will have to continue to work with them and other opposition TDs to secure support for legislation.
“They won’t have any other option,” he said.
Mr McGrath said that he didn’t feel that Fianna Fáil’s hands were tied due to the agreement, but that they had done the best they could in the circumstances, and achieved a number of policy goals.
“We would have preferred to lead a minority government, but we couldn’t increase our support. So we had to make a pragmatic decision to support a minority government, or there would be another election.
“It was a simple and stark choice, and we hope to make it work,” he said.
DETAIL OF THE AGREEMENT:
-Rent supplement is to be increased by 15% depending on a person’s location, and Fine Gael will extend the roll-out of the Housing Assistance Payment.
-Water charges are set to be suspended in six weeks under the deal.
-Reducing USC for lower and middle income earners.
-Improving supports and services for older people, including possible pension increases.
-Publishing all agreements with independent TDs or other parties “in full”.
-A 2:1 split between investment and public spending and tax reductions.
-Speeding up social housing building, removing barriers to private housing, and extending mortgage interest relief.
-Planning to create a five-year health service plan.
-Employing 15,000 gardaí and instigating a review of garda station locations.
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