Cabinet split in most serious row to date over housing funding
It was reported that Taoiseach Micheál Martin (L) and Finance Minister Paschal Donohoe (R) went 'toe to toe' at the Cabinet meeting over housing funding. File Photo: Sam Boal/Rollingnews.ie
Senior government figures have clashed at Cabinet over the county's housing plan in what has been described as the most serious row of the uneasy Fianna Fáil-Fine Gael coalition to date.
The two largest pillars in the three-party government are understood to be completely at odds over the multi-billion euro 'Housing for All' plan, with the dispute so severe over the budget for the scheme that the Government has failed to agree its summer economic statement (SES), the traditional prelude to the budget.
Taoiseach Micheál Martin and Finance Minister Paschal Donohoe have clashed at Cabinet budget for the housing plan, which resulted in a scheduled memorandum on the SES failing to make it onto the agenda.
A “genuine stand-off” emerged at Cabinet when a “visibly irked” Mr Donohoe made it clear that the SES was not agreed and the failure to bring it to Cabinet risks undermining the fiscal credibility of the Government.
“The Government was not able to deliver on its statement setting out the budgetary parameters as it said it would because of this row, so it is pretty serious,” said one Cabinet source.
Mr Donohoe is understood to have given a "pretty stern" warning on funding the plan, resulting in the Taoiseach going "toe to toe" with the Fine Gael finance minister.
Mr Donohoe said the funding for the housing plan “must be agreed” as soon as possible.
On a previous occasion, Mr Martin had sided with Mr Donohoe and Public Expenditure Minister Michael McGrath on the need for fiscal discipline, but yesterday, he “sided” with Housing Minister Darragh O’Brien, sources suggested.
Several Cabinet sources confirmed the “pointed” exchanges between Mr Martin and Mr Donohoe.
Agreement has not yet been reached on the level of funding to be committed to the delivery of housing and as a result, an additional Cabinet meeting will be required later this week to sign off on it.
A series of emergency meetings between officials and Mr Martin, Tánaiste Leo Varadkar, Green Party leader Eamon Ryan, as well as Mr Donohoe, Mr McGrath, and Mr O’Brien will now take place in order to resolve the stand-off.
At least one other Cabinet meeting will be required to resolve the matter before the end of the week.
The Government is due to launch its Housing for All plan this month, but according to senior Coalition sources, the memo, which was due for approval yesterday morning, could not be agreed.
“Housing is the problem. There is now going to have to be a second Cabinet meeting this week and Paschal Donohoe is due to speak to it at the budget oversight committee on Thursday,” a Cabinet source said.
Concern has been expressed that the Government, in seeking to ram several key pieces of legislation through the Dáil this week, has been accused of “making a mess” of things.
Mr Donohoe and Mr McGrath had sought to have the SES approved by Cabinet on Tuesday ahead of the Dáil rising later this week.
Speaking about the stand-off, Mr Ryan said Mr Donohoe was doing his job in setting out the parameters of what is possible from a financial perspective.
“Paschal and Michael McGrath rightly have a job to do in setting out the economic statement. It has to be in line with us delivering the Housing for All Strategy. Those have to work together. So it is complicated but it is on track and will be delivered,” Mr Ryan said.
“We will have it out this week. It is a significant policy change. It is connected to the Housing for All strategy. It is going to be very different, increased ambition and will have additional measures which will have economic consequences. I am confident we can get that through this week."
CONNECT WITH US TODAY
Be the first to know the latest news and updates
