Fianna Fáil: Any new policy will require talks

Fianna Fáil will demand a renegotiation of the confidence and supply agreement if the new Fine Gael leader attempts to introduce policies into the programme for government.

Having to go back into talks with Fianna Fáil to secure the party’s backing would put further strain on the already shaky minority government.

It comes after Simon Coveney and Leo Varadkar published policy documents outlining the changes they would make if elected leader.

Among Mr Varadkar’s proposals are incentivising older people to move out of large homes, keeping pension levels above inflation and increasing the back-to-school footwear and clothing allowance by 50%.

Mr Coveney would establish a powerful anti-corruption and transparency commission to respond to whistleblowers, would tackle the urban/rural divide through investment in regional cities and towns; and would make his Government the greenest administration in the history of the State.

But Fianna Fáil’s public expenditure spokesman Dara Calleary said his party would call for fresh talks if any new policies are pushed.

While he said Fianna Fáil are “at this stage” maintaining the agreement with Fine Gael, he said: “If they intend to either change Confidence and Supply or introduce policies into the programme for government then we will have to reopen negotiations.

“But for now, all we are seeing are proposals, some of which will go beyond the programme for government,” Mr Calleary said.

His party colleague Michael McGrath also seemed to question whether Government could afford to introduce some of the measures being put forward by the Fine Gael leadership contenders.

He said it is “noteworthy” that the two candidates who are “serving in a Government that has the centrepiece in terms of tax policy of the abolition of USC” now seem “intent on retaining the USC”.

Mr McGrath cited a European Commission report published this week which he said struck “quite a cautious note” in relation to the public finances.

“We don’t want people to be given any false sense of what can be done, we don’t want to see false promises made.

“It’s very obvious to the Irish people that the level of resources available is quite tight, it’s in the region of €500m for 2018 and that’s before you have a new public sector pay deal.

“So all of the promises being made have to be seen in that light and against that backdrop,” Mr McGrath said.

“It is our view that securing the public finances on a safe pathway not taking unnecessary risks on the economy is the absolute priority,” Mr McGrath said.

The Fianna Fáil finance spokesperson added that the two Fine Gael leadership contenders should be mindful of that especially in the context of Budget 2018.