Newborn scheme shelved as coalition parties decide on programme for government

It is understood plans for a publicly funded childcare model will be included, which was widely agreed-upon during the election campaign by most parties

A key pre-election proposal of Taoiseach Simon Harris’s will be watered down in the programme for government as plans to put €1,000 for all newborns in a savings scheme will not make the final document.

The Acorn scheme had been one of few areas of divergence between Fianna Fáil and Fine Gael and will see its wording changed to a commitment to explore the idea. It is understood plans for a publicly funded childcare model will be included, which was widely agreed-upon during the election campaign by most parties.

Sources said the document envisages “State involvement” in the sector, with plans for a “a broad consultation with families, educators, and providers” as envisaged in the Fine Gael manifesto.

A programme for government was agreed between negotiators for the two parties and regional independents yesterday, with the regional group set to have two super-junior ministers.

The deal paves the way for Micheál Martin to become Taoiseach once more next Wednesday.

The document will feature a “significant” commitment to business supports and is likely to commit to a review of Vat rates with a 9% rate for food-based businesses in the next budget envisaged, as well as support funding for suckler and sheep farmers and a commitment on the nitrates derogation, along with much of both the parties’ manifesto commitments in agriculture. The regional group had sought a roadside tree felling scheme, but this is seen as prohibitively expensive.

The first home scheme will be expanded to second-hand homes as the coalition looks to scale up capacity to build 60,000 homes a year. The first home and help-to-buy schemes will be extended to 2030.

There will however be no commitment on a 2:1 spending ratio on public transport to road projects as seen under the last government. Sources from both parties said the ratio had impacted on road building and this will no longer be the case as large projects like Metro are prioritised.

Two new government departments which were floated in the election campaign will not be included.

Mr Harris’s proposed department of infrastructure and a Fianna Fáil proposal for a home affairs department will not be established as standalone entities, but will be housed in the Department of Public Expenditure and Department of Justice, respectively.

Cabinet will be split in favour of Fianna Fáil, which will have eight members and Fine Gael which will have seven. Fianna Fáil is expected to take on the justice department, which will resume oversight of immigration policy under the home affairs unit, while Fine Gael is expected to return Paschal Donohoe to the Department of Finance. Fianna Fáil’s Jack Chambers is expected to lead the public expenditure department, which will be in charge of infrastructure and reform.

It is also expected that the trade portfolio will return to the Department of Foreign Affairs, fuelling speculation that this is where Mr Harris will land when Mr Martin is elected taoiseach.

The Department of Enterprise, which currently has the trade competency, will instead take on tourism.