If Fine Gael "get off the stage" with regard to the formation of the next government the country would be ungovernable, acting minister for foreign Affairs, Charlie Flanagan said on Thursday.

The Co Laois TD said if Fine Gael withdrew from the process of forming the next government they would be “ensuring that this country is ungovernable. It’s not a question of getting off the stage, as the largest party Fine Gael has a duty and an obligation that we work towards the formation of a government.”

He added that negotiations on the formation of a government had been painstaking but that it was important to get it right, he told RTÉ's Morning Ireland.

Both acting Taoiseach Enda Kenny and Fianna Fáil leader Micháel Martin have failed to be elected Taosieach following three votes in the Dáil. Mr Martin failed to secure the support of any TDs outside of his own party.

Following the agreement of a deal on how to handle the issue of charging for domestic water services, Mr Flanagan said he stood by the principle that water should be paid for. Under the deal, water charges will be suspended for nine months while an expert commission examines the funding models.

“I stand by Irish Water. It’s hugely important and needs to be paid for,” Mr Flanagan said.

“Politics is reflective of the Dáil numbers. We are going to have to look at new ways to find new solutions.”

“We need to abide by the will of the people - the will of the people produced an inconclusive result - a fairly messy parliament. These are the cards we have to play.

“It’s about finding agreed solutions - about the formation of a stable government - a range of issues need to be addressed.”

Mr Flanagan noted water charges was not the most important issue in the election.

“Funding for water is important. It needs to be paid for. The most important term of reference of an independent commission will be to scope out opportunities for funding and make recommendations.

“My preference was for user pays, to put an end to scandalous waste of water, that those responsible for waste would pay.

“The important pathway is to proceed to the formation of a government, we are much nearer that now than a week ago.”

Economist Colm McCarthy told Newstalk Breakfast on Thursday Irish Water was a "failure of political marketing" on the part of the government who did not explain it properly to the public.

Coming as it did after the USC, reduced wages and other austerity measures, it was ‘the final nail”. There was a lack of clarity and of explanation to the public, he added.

Mr McCarthy said the country required an engineer-driven single utility to provide water as the previous system, operated by 34 different councils and local authorities, was “under invested, under managed and provided poor-quality water.”

The handling of the issue by both Fianna Fáil and Fine Gael had been “messy” he said.

“There was always a case for paying more. Only €1 in €6 of the cost of the service is paid for by users. We should be spending more on the system. It would be hard to proceed with users not contributing.

“Most people pay less for water than they do for a TV licence.” Mr McCarthy said he objected to the notion that if there hadn’t been an EU directive that there wouldn’t have been a need for such a utility.