Fianna Fáil expects to be asked to "serious negotiations" with Fine Gael before the Dáil next votes on candidates for taoiseach, if more Independents declare for Enda Kenny than Micheál Martin in the next two weeks.
Fianna Fáil may be prepared to adopt a “Tallaght strategy” approach, mirroring the policy followed by Fine Gael in 1987 where the party would not oppose economic reforms proposed by the Fianna Fáil minority government in the national interest.
Certain party sources said Fianna Fáil is a “responsible party” that will be mature in its approach.
Fine Gael has indicated it is open to dropping its election pledge of entirely abolishing the Universal Social Charge (USC) as part of government negotiations. The party yesterday circulated a document outlining areas for discussion. It lists “personal tax rates and the future of the USC”, indicating it is open to changing its policy.
Minority coalition
Mr Kenny, the acting Taoiseach, held talks yesterday with 15 Independent and the two Green Party TDs and deputies from smaller party with a view to forming a minority coalition.
The Fine Gael delegation was repeatedly pressed on when Fianna Fáil would be approached to support such an administration. Mr Martin is continuing to seek support for his candidacy for Taoiseach when the Dáil meets on April 6th.
Fianna Fáil has 43 seats and Fine Gael has 50. Michael Lowry will support Mr Kenny.
However, Fianna Fáil sources, while firmly ruling out a grand coalition, said if the extra numbers supporting Mr Kenny persuaded Independents to declare for Fine Gael, they would be open for “serious negotiations”.
“Fianna Fáil is a responsible party,” said one. “When we are approached there will have to be serious negotiations on how some of our priorities would be implemented by that minority government and then issue by issue [support] with reform.”
Confidence votes
Fianna Fáil wants reforms that would only allow a government fall if defeated on confidence and budget votes, but it was stressed the party will play “a constructive role”.
Some Ministers have said they want Fianna Fáil’s support to extend for a certain period, such as two budgets. Such matters will form part of negotiations, a Fianna Fáil source said.