Acting Taoiseach Enda Kenny said the Fianna Fail decision not to enter government was a "serious mistake" and "driven by narrow interests rather than the national interest".

In a statement Mr Kenny said : “Ireland needs a stable and lasting government to meet the many national and international challenges facing the country.

"Fine Gael's preferred option of a full partnership is the best option for providing the necessary stability and it is very regrettable that Fianna Fáil has rejected this historic opportunity."

Fianna Fáil leader Micheál Martin and Fine Gael leader Enda Kenny met briefly on Thursday afternoon .

Minority government

Mr Martin said the Fianna Fáil is willing to support a minority government. Mr Martin said he wants to lead one himself but in the event he cannot, Fianna Fáil would support Fine Gael.

He said relationships in any arrangement were key and his discussions with Mr Kenny left a lot to be desired.

Mr Martin is to continue to try to form a Fianna Fáil minority Government. After a meeting of his parliamentary party Mr Martin rejected the acting Taoiseach’s offer of a partnership Government.

A spokesman for the acting Taoiseach says this was a mistake and a serious missed opportunity. The spokesman said the offer still stands and said such a Government can offer stability. Mr Kenny’s spokesman said the decision by Fianna Fail was made in haste and should have been considered properly.

The spokesman said Mr Martin did not mention minority government at the meeting with Mr Kenny. He said it lasted 15 minutes and there are no further meetings scheduled.

Party ahead of country

Minister for Health Leo Varadkar has accused Fianna Fáil of putting the party ahead of the country.

Mr Varadkar said the decision by the party not to enter a partnership with Fine Gael was a mistake. He said Fine Gael made a historic offer and it was hastily rejected within a few hours. Mr Varadkar said it was time to put party’s interests aside and form a government.

Fianna Fáil meeting

A small number of TDs spoke in favour of a partnership at the parliamentary party meeting.

Fianna Fail TD Barry Cowen said we cannot have a government for the sake of a government. He said the Fianna Fail leader would ask the Taoiseach to give him the space to form a minority Government.

Mr Cowen said he was confident a number of the Independents would side with Fianna Fáil in a vote for Taoiseach.

The meeting of the party on Thursday has heard strong opposition to the proposal. The Irish Times understands the overwhelming majority of the party is not in favour of the proposal tabled by Mr Kenny in discussions with Mr Martin on Wednesday night.

Fianna Fail told the Irish Times there was unanimous opposition to the proposal. “Not a hope in hell.”

Mr Martin was told by his members the party cannot enter a partnership with Fine Gael after the electorate had rejected them.

The meeting began at 11am after a “full partnership” proposal for government last night from Mr Kenny, which followed negotiations yesterday withMrl Martin.

Ahead of today’s meeting, Cork Fianna Fáil TD Billy Kelleher said partnership was not the only option.

"Fianna Fáil could form a minority government. There are other options that can be explored, of course we would like to have an opportunity to play a meaningful role," he told RTÉ's Morning Ireland.

Ahead of the meeting Limerick Fianna Fáil TD Willie O’Dea said Mr Kenny’s offer would be rejected. “I wouldn’t support it myself. The people voted to get rid of the outgoing government. They voted to get rid of Enda Kenny.

“The people who supported me didn’t contemplate that I would be part of an arrangement which would involve, ultimately, putting Enda Kenny back as Taoiseach. Sharing mercs and perks with Fine Gael.

“There has been a serious diminution of trust in politics in this country. Part of that is rooted in the apparent tendency of politicians to say one thing and do another.

“We promised before the election that we would not go into coalition with Fine Gael. We are going to remain true. We are not going to renege on promises made to the people.

“But we are prepared to be responsible. A Fianna Fáil minority government is our preference.”

Fine Gael unanimous support

A spokesman for Mr Kenny said the acting Taoiseach told Mr Martin last night he could proceed with a minority Government if necessary. It had been reported Mr Kenny had told the Fianna Fail leader at a meeting on Wednesday night a minority government supported by Independents will not work. A spokesman for the acting Taoiseach denied that.

Mr Kenny will call a meeting of his Ministers after meeting with Micheal Martin today.The Fine Gael parliamentary party also met today and Mr Kenny received unanimous support to proceed in discussions with Fianna Fáil.

On Thursday morning, also speaking on RTÉ, Minister for Agriculture Simon Coveney said the Fine Gael proposal is a generous and serious offer and not a political manoeuvre.

Mr Coveney, who is part of Fine Gael’s team negotiating with other parties on the formation of a new government, said he supported the proposed arrangement.

Mr Coveney said it was too early to discuss details such as whether such a deal would include a rotating taoiseach, and he pointed out that Fine Gael was the largest party.

He said Mr Kenny secured agreement from his Ministers for the proposed deal prior to contacting Mr Martin.

“I think it is in the best interest of the country for the two largest parties to come together along with the Independents, to bring balance and diversity and the voting strength to pass the legislation we need to pass,” he said.

“If a government is looking over their shoulder every two weeks to see if they are going to survive another two weeks, that is going to lead to an inability to solve many of complex problems we need to solve.”

He said: “I think it is a generous offer, it is not a political manoeuvre - it is a real offer that we hope Fianna Fáil will take at face value. It is also an offer to the Independents too, we haven’t forgotten them.

“We need to put historical differences aside, to agree to put policy and personality differences on the table and find a way of negotiating compromise so both parties can put a partnership government together.

“We’re looking forward not looking back.”

The Minister also said it would be difficult to see a situation where Fianna Fáil can put a credible minority government in place, but later said minority governments “can work”.

He admitted there had been mistakes in how Irish Water was set up, but that water charges were important and a single utility was important.

Preference

A member of the Fianna Fáil team negotiating with other parties on the formation of a new government said the Fine Gael proposal was not what he wanted.

Donegal Fianna Fáil TD Charlie McConalogue said a Fianna Fáil minority government remained his preference.

Mr McConalogue said while he was not sure of the exact details of Enda Kenny’s offer, “it would be a coalition government. It would mean Fine Gael would still be in Government.

Mr McConalogue claimed the public preference was for Mr Martin as taoiseach.

“It is important that the wishes of the people are reflected. I strongly believe that the vast majority of politicians in the Dáil were elected on a platform to bring about change.

In a vote for taoiseach on Wednesday Mr Martin secured 43 votes from the 43 Fianna Fáil TDs.

The Fianna Fáil parliamentary party will meet later today at which the full details of the meeting will be discussed.

"We want to put together a Government that will be stable, agreeing a platform with people who share our policies. We don't share a lot of policies with Fine Gael," he told Newstalk's Breakfast programme.

On Wednesday night, acting Mr Kenny formally asked Mr Martin to participate in a “full partnership” government along with Independent TDs.

Both leaders will bring the proposal to their parliamentary parties on Thursday but Fianna Fáil sources say the party is unlikely to abandon its repeated commitment not to enter a coalition with Fine Gael.

Although several Fianna Fáil front benchers are known to be willing to consider such a deal favourably, Mr Martin and the party’s organisation remain opposed.

The offer came at a meeting in Leinster House, and took Fianna Fáil by surprise.

Mr Kenny had earlier told his Ministers of his intention to make the offer, following another day of inconclusive votes for taoiseach in the Dáil.

Mr Kenny failed to secure the support of any Independent TDs, with the exception of Michael Lowry.

It is understood that Fianna Fáil will be prepared to support a minority Fine Gael-led government if Mr Kenny can command a Dáil majority with Fianna Fáil abstaining.

That means the Fine Gael leader needs to secure the support of at least seven Independent TDs before the Dáil meets again next Thursday to make a Fine Gael-led minority government supported by Fianna Fáil possible.

Dáil arithmetic means that a bare majority – with Fianna Fáil abstaining – is 58 votes. Between Fine Gael TDs and the Independent Michael Lowry, Enda Kenny has 51 votes, meaning he will have to persuade seven Independent TDs to support his nomination for taoiseach.

Only then will Fianna Fáil discuss a deal to support a minority Fine Gael-Independent government under a “confidence and supply” agreement, whereby Fianna Fáil would abstain on votes of confidence or finance matters.