Regional Independent Group strikes deal with Fine Gael and Fianna Fáil on formation of next government

VAT to fall from 13.5 per cent to 9 per cent for food, hospitality, hairdressers and entertainment in next budget

Independent TD Michael Lowry at Government Buildings with fellow  TDs Marian Harkin and Sean Canney, ahead of negotiations between Fianna Fáil, Fine Gael and the Regional Independent Group to form the next government. Photograph: Leah Farrell/RollingNews.ie
Independent TD Michael Lowry at Government Buildings with fellow TDs Marian Harkin and Sean Canney, ahead of negotiations between Fianna Fáil, Fine Gael and the Regional Independent Group to form the next government. Photograph: Leah Farrell/RollingNews.ie

A deal has been struck between the Regional Independent Group, Fine Gael and Fianna Fáil, paving the way for the formation of the next government.

It is understood under the new agreement, the RIG will hold two super junior ministries, meaning two members will now sit at Cabinet. The two roles will be filled by Galway East TD Seán Canney and Noel Grealish of Galway West, while Sligo–Leitrim TD Marian Harkin and Longford–Westmeath TD Kevin ‘Boxer’ Moran will hold junior ministerial roles.

That would leave Michael Lowry and new TDs Barry Heneghan and Gillian Toole as backbenchers in the Independent group.

An agreed programme clears the way for Fianna Fáil and Fine Gael to commence their respective ratification processes, which sources say should be completed in time for the Dáil meeting scheduled for Wednesday, January 22nd.

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The RIG had been hoping for a full cabinet seat, but Fine Gael and Fianna Fáil were resolute that no such offer would be forthcoming, suggesting the allocation of full cabinet positions would be retained by the two large parties, with an anticipated eight-to-seven split in favour of Tánaiste Micheál Martin’s party.

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The Fianna Fáil leader is also expected to get the first rotation in the taoiseach’s chair before it reverts to Fine Gael later in the government’s term.

While sources said the programme for government would not be explicit on VAT, it is understood there is political agreement for VAT on energy to stay at 9 per cent and fall from 13.5 per cent to 9 per cent for food, hospitality, hairdressers and entertainment in the next budget.

It is expected the new deal will not continue the previous coalition’s commitment to a 2:1 spend favouring new public transport projects over new roads. The commitment was trumpeted by the Green Party in the last programme for government. A source involved in the drafting said the programme would be “silent” on the ratio of spending.

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A senior source said that with increased capital spending on big public transport infrastructure projects like Metro and Dart, the ratio would likely remain at the same level or higher.

The next government will be “ambitious on public transport and roads”, a figure involved in drafting the deal said. “There won’t be as many cycle lanes built, that’s for sure,” they added. “It’ll be about big picture stuff now.”

The programme will also have a firm commitment to progress the Occupied Territories Bill.

There will be no commitment in the programme for government to hold referendums on public ownership of water or the right to housing.

While the deal must be formally approved by the seven members of the RIG and the two main parties Mr Lowry confirmed the group is now happy that its policies have been included in the draft programme for government.

“It has been a long and painstaking process. We are happy that our most of our policy document is reflected in the programme for government. We have agreed structures in terms of liaison with our group and the government parties,” the Tipperary North TD said.

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“The document will be presented tomorrow afternoon for consideration and approval within our group, and in the Fine Gael parliamentary party and the Fianna Fáil parliamentary party,” he said.

“We put a lot of time into this. Contrary to media speculation about this being a parish pump thing, we were conscious of the national issues and fed in to all of those.”

He said there has been “agreement in principle” on ministerial positions.

Mr Heneghan, a Dublin Bay North TD, also said he is happy to back the next government after a final meeting Taoiseach Simon Harris and Mr Martin on Tuesday.

“I had a meeting the Tánaiste and Taoiseach today. I fought for Dublin Bay North. The things I ran on, addressing the housing crisis, disability, mental health, Irish language, Beaumont Hospital – I am very happy with how things went there,” he said. “As an Independent, you have to roll up your sleeves. If I can go back to the people of Dublin Bay North with my priorities addressed I am happy to be part of what’s next.”

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It is understood the programme for government will contain a commitment to keep both Help to Buy and First Home schemes to 2030 and look at changes to help to buy and expansion of the first home scheme. The next government will also commit to expanding the First Home scheme to second homes, from the current position where the shared equity scheme can only be applied for new builds or self-build homes.

The Fine Gael parliamentary party has been notified that it will meet on Wednesday. No time has been arranged, but it is expected that the party’s TDs and Senators will be meeting at the same time as their Fianna Fáil counterparts to discuss a draft programme for government.

Meanwhile, Independent Kerry TD Danny Healy-Rae has said “you couldn’t put a figure” on the level of investment he and his brother would seek for Kerry in return for supporting the next “because it is so much”.

Meanwhile, his brother Michael Healy-Rae has insisted their main concern in -formation talks is “doing right by the people of Kerry” and not ministerial positions, as it emerged there will be no offer of a super-junior ministerial role forthcoming from Fianna Fáil and Fine Gael.

Their remarks came in advance of renewed talks between the Healy-Raes and the two big parties on Tuesday afternoon.

The Healy-Raes have been expected to seek at least a super-junior ministry – which, if agreed to, would give them a seat at Cabinet – in addition to a constituency deal in return for supporting the incoming .

However, senior sources said on Tuesday there will be no offer of a super-junior role.

This would suggest the Healy-Raes will be offered, at best, a conventional junior ministerial role operating under a full cabinet position.

Outside Government Buildings on Tuesday afternoon, Michael Healy-Rae played down the significance of a super-junior role.

He said: “The main concern that myself and Danny have is the electorate in Kerry and doing right by the people in Kerry. It’s not about positions.

“The only reason why positions might be important is about future delivery of services and taking money from central , and delivering for the people of all aspects of life in Co Kerry.”

He added: “And of course there’s a job to do in the rest of the country as well. But our first important issue is dealing with the commitments that we want to deliver on in Kerry.”

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Danny Healy-Rae said the people of Kerry had been “seriously left behind”, and he and his brother had “an awful lot to talk about” with Fianna Fáil and Fine Gael.

His brother added: “We have a lot of headings to go through tonight, and the best way I could describe it is you might see a few candles on inside there late tonight burning the midnight oil, because we’ll keep at it in the best way we can, and hopefully it will work.”

Could the next government see a Healy-Rae at the cabinet table?

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Asked about the level of investment he would need to see in Kerry before offering support for the incoming government, Michael Healy-Rae said: “We’re not going into that sort of stuff now. We’ll do that inside there [Government Buildings].”

Danny Healy-Rae added: “You couldn’t put a figure on it anyway because it is so much.”

His son, Cllr Johnny Healy-Rae said: “It would take a lot of men to count the pages anyway.”

Jennifer Bray

Jennifer Bray

Jennifer Bray is a Political Correspondent with The Irish Times

Jack Horgan-Jones

Jack Horgan-Jones

Jack Horgan-Jones is a Political Correspondent with The Irish Times

Pat Leahy

Pat Leahy

Pat Leahy is Political Editor of The Irish Times

Cormac McQuinn

Cormac McQuinn

Cormac McQuinn is a Political Correspondent at The Irish Times