Latest: Fine Gael: Looking for further legal clarity on water charges not too much to ask

Update 12.30pm: Fine Gael said it is not asking too much of Fianna Fáil to delay a decision on water charges while they get legal advice.

The country's two biggest parties are at odds after a report from the Oireachtas funding committee which claims bills should be scrapped.

Fianna Fáil wants to follow the recommendations, but Fine Gael is worried they could expose us to European fines.

The parliamentary party head Martin Heydon (pictured) said they need to proceed carefully.

“If any corporation was at risk of making a decision that could incur huge fines there would be a team of legal experts on it.

“I don’t think it is asking too much, what Fine Gael has looked for - further legal clarity around it. We would really like to support this committee. I didn't spend three and a half months of my time on a committee to vote down the report.

“I would like to see if we could get some tweak in here to bring this over the line.”

Update 9.30am: Comments by Fianna Fáil over the weekend have 'upped the ante' in the water row, according to the head of the Fine Gael parliamentary party.

Martin Heydon has been responding to Barry Cowen's threat to block the election of a new Fine Gael Taoiseach if they won't scrap charges.

The country's two biggest parties can't agree whether to follow the recommendations of a report by the Oireachtas Water funding committee.

Fine Gael is worried it may breach European law, leaving us exposed to fines.

But Mr Heydon said the arguments are not helpful.

“It has upped the ante and it has taken the focus away from what we should be discussing.

“This isn’t about personalities, it’s not about leadership contests. For me and my five colleagues, we are ultimately answerable to our parliamentary party. We want to be able to go back to them and show we have supported this report and encourage them to vote for that report in the Dáil.

“But we are not there at the minute.”

Earlier: The standoff continues between Fine Gael and Fianna Fáil on how to deal with an Oireachtas Committee's report on water charges.

The committee is due to sign off tomorrow on its recommendations to abolish charges and allow refunds for customers.

Over the weekend, Fianna Fáil threatened to block the election of a new Fine Gael leader if the government does not bring in laws to scrap the charges.

Micheál Martin and Barry Cowen said the government must respect the wishes of the Dáil as set out in its 'confidence and supply' agreement.

But Fine Gael is insisting that the committee's findings represent a breach of EU law.