Negotiating teams from Fianna Fáil and Fine Gael will meet on Wednesday to begin formal discussions on forming a coalition government for the second time.
The deputy leaders of the two parties, Jack Chambers and Helen McEntee, met on Tuesday evening and agreed the structure and format of the talks. In a joint statement, both described the meeting as positive.
It came after party leaders, Micheál Martin of Fianna Fáil and Simon Harris of Fine Gael, separately completed preliminary discussions with representatives of the two blocs with which it could seek to become the third arm of a coalition: the Labour Party and a group of eight Independent TDs who have formed the Regional Independent group.
Both the Taoiseach and Tánaiste met Labour leader Ivana Bacik in separate meetings on Tuesday afternoon for what were described as preliminary discussions. Ms Bacik presented each leader with Labour’s policy priorities.
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“There was discussion on policies and manifesto commitments on housing, health, climate, workers’ rights, and disability issues,” a Labour spokeswoman said in a statement.
The party’s 11 TDs will meet on Friday afternoon where Ms Bacik will provide an assessment of her engagement with both leaders. The parliamentary part is then expected to decide if it will proceed with exploratory talks to the two outgoing government parties.
The Regional Independent group will meet on Wednesday afternoon to consider its next steps, following a series of individual meetings between its TDs and Mr Harris on Wednesday. Its convener, Michael Lowry said the group would decide on how it would approach the talks, their preferred structure, and who will be on the negotiation team.
“I do not think that anything will happen quickly,” he said. “The earliest it will happen [a new government being formed] will be in the new year.”
He said he expected Fianna Fáil and Fine Gael to merge their manifestos and agree a joint policy platform with the third partner in government having an input into the final document at that stage.
Social Democrats deputy leader Cian O’Callaghan will also hold meetings with the Taoiseach and Tánaiste on Wednesday to set out the party’s position and its red lines. There is less expectation among those involved in the process that the Social Democrats will be willing to pursue government formation talks.
There are some clear policy differences between Fine Gael and Fianna Fáil. Fine Gael wants to establish a Department of Infrastructure and also introduce a new VAT rate of 11 per cent.
Fianna Fáil is expected to seek an overhaul of the Department of Public Expenditure as part of the government formation talks in a bid to cut red tape in public spending.
A senior source said that with a range of infrastructure megaprojects coming down the line during the lifetime of the next government, the focus had to be on delivery.
It also wants a new Department of Domestic Affairs to oversee immigration issues, to be overseen by the Minister for Justice.
Fine Gael sources indicated that a package of supports for business is likely to form a core emphasis for the party during negotiations
Meanwhile, the Taoiseach has appointed three unsuccessful election candidates to the Seanad.
They are Minister of State Anne Rabbitte and Joe Flaherty of Fianna Fáil, who lost their Dáil seats in Galway East and Longford-Westmeath respectively and former Fine Gael TD Alan Farrell who failed to get re-elected in Dublin Fingal East.
The three politicians replace senators who were elected to the Dáil.
A Government spokesman said: “As part of an agreement between the leaders of Fine Gael and Fianna Fáil, the three vacant seats have been filled until the next Seanad elections in accordance with Article 18.10.2 of the Constitution.
“Alan Farrell will replace Emer Currie, and Joe Flaherty and Anne Rabbitte will replace Erin McGreehan and Timmy Dooley.”
The Seanad election takes place at the end of January.
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