Separate talks on government formation between Fine Gael and Fianna Fail and Independent TDs will continue on Wednesday amid signs of growing momentum towards contacts between the two big parties ahead of the Dáil's resumption next week.

Acting Taoiseach Enda Kenny met with Independent TDs for over ten hours at Government Buildings on Tuesday , where both sides reported good progress was made towards a programme for government.

However, the Green Party leader Eamon Ryan is to seek the views of membership as to whether it should remain a part of talks on the formation of a government. The party looks set to drop out of any negotiations, which will be a blow to Fine Gael attempts to assemble support for Enda Kenny in the next vote for Taoiseach.

With the reality of Dáil arithmetic obvious to all participants, senior sources at Leinster House expect imminent contacts between Fine Gael and Fianna Fáil.

Mr Kenny offered an array of commitments to rural Independent TDs on Tuesday with a package which proposed increased investment in broadband and on the rural transport network. Fine Gael also insisted it would not move to close any small schools, post offices or Garda stations if in government and would protect the credit union sector. The talks also dealt with housing and mental health.

In addition, Fine Gael presented the Independents with a paper on how a minority Government would work in practice. The paper, promising “a new form of government”, outlined how legislation would be passed with a minority government, allowing different levels of responsibility from ministers and backbenchers. Fine Gael promised ‘good faith and no surprises’, pledging to keep all deputies informed of government policy development and announcements of interest to them.

Mr Kenny told the Independents this would not be a case of them supporting a Fine Gael minority Government. He said this was about partnership and establishing a basis for a programme for government.

Overhaul budget process

Fine Gael has promised to overhaul the budget process in a minority Government. In the negotiations with Independents the party said it wants the Dáil to have a greater say in development of Budget and allow deputies have a greater opportunity to propose substantive changes to the process.

In the briefing paper by Fine Gael the party promised no surprises and insisted Independents would be central to discussions. It promised to keep all deputies informed of government policy development and outputs.

The party outlined: “Other countries that have experienced regular minority Governments or variable coalitions have developed conventions which make it easier to maintain a partnership approach.

“These, and other approaches, can and should be considered in a new working arrangement both within government and between government and the Oireachtas.” The party also insisted the political system is too focused on the short-term and requires long-term planning.

Fine Gael is to continue discussions with some Independents on Wednesday, while the Green Party, the Independent Alliance and a group of rural TDs are also due to meet Fianna Fáil leader Micheál Martin.

With no candidate likely to achieve a majority on April 6th, focus is moving towards the prospects for talks between Fine Gael and Fianna Fáil. These are likely to focus on the prospects for Fianna Fáil support of a Fine Gael-Independent minority government.

Senior sources expect that initial contact is likely between Fianna Fáil and Fine Gael before the weekend, perhaps as early as Wednesday evening. Work is ongoing in both parties to prepare for talks, with significant differences between the two parties expected on the future of Irish Water, cuts to the Universal Social Charge (USC) and health service issues.

No decision has been made by Fianna Fáil about such a process but an approach by it to Fine Gael, rather than the other way around, has not been ruled out.

The momentum pushing the two parties towards talks intensified on Wednesday when Minister for Health Leo Varadkar said it would be difficult to form a stable government without "some sort of arrangement" between Fine Gael and Fianna Fáil.