Kenny and Martin speak as Fine Gael-Fianna Fáil talks stall

Fine Gael leader Enda Kenny and Fianna Fáil leader Micheál Martin have spoken by telephone after negotiations between their parties adjourned without resolution.

The two leaders are expected to speak again on Saturday as efforts to form a new government, more than 50 days after the general election, continue.

Their negotiating teams are also on standby to resume talks over the weekend after they failed to reach agreement on housing, health, childcare and Irish Water, amongst other issues.

Speaking after the talks at Trinity College Dublin, Fianna Fáil Dublin Bay South TD Jim O’Callaghan said it was now time for the two party leaders to intervene to resolve the issues.

“We are available to recommence talks should it be required tonight or tomorrow.

“I don’t believe any problem is insurmountable if there is compromise on both sides but we have reached a stage now where we have been talking for a while and a number of fundamental matters have to be resolved and haven’t been resolved yet.

“I don’t think they are going to be resolved without instruction from our leaders.”

Minister for Transport Paschal Donohoe said the party will be seeking guidance from acting Taoiseach Enda Kenny.

He said the party is committed to reaching agreement but it has to recognise the mandate that has been given to the party.

Mr Donohoe said there are a number of important factors to be dealt with by the two parties.

Mr Kenny and Mr Martin are expected to personally decide within days on whether any agreement between their two parties is possible.

It is anticipated that a Dáil vote on Taoiseach, as well as the formation of a government, could take place next week, depending on a successful resolution of various talks.

Earlier, Minister for Health Leo Varadkar warned both sides will need to make uncomfortable compromises if a government is to be formed.

Mr Varadkar said he would not be conducting the discussions through the media, but a lot of areas still needed to be agreed by the two parties.

“It is not just about Irish Water,” he said. “There are very other important pressing economic issues like housing, public services and all of those things. In order to come to an agreement, both parties will have to make compromises, compromises that may make us uncomfortable. It is also the case nothing is agreed until everything is agreed. It is either a package or nothing at all.”

Mr Varadkar said the parties are inching closer together on an agreement with every passing day.

No deadline

Fianna Fáil TD Michael McGrath said the party would not be putting a deadline on the talks. However, he said they could not continue for a prolonged period of time. “Today is a pivotal day. the talks cannot go on forever. we are committed to seeing the process through to try and reach an overall agreement to enable Fine Gael to proceed.”

Earlier, Meath Fianna Fáil TD Thomas Byrne confirmed “there has been absolutely no deal on Irish Water. The talks are still going on. More reports are coming back to us on the issue before a decision is reached. The media reports are all just spin.

“Fine Gael should be putting substance before spin. An agreement may not happen at all if Fine Gael can’t get the numbers. People are jumping the gun.”

It had been reported a broad outline of an agreement on water was reached which would see charges suspended until a new system with generous allowances is put in place.

Fianna Fáil’s Barry Cowen said it was hoped the deal on Irish Water and water charges could be finalised on Friday.

Mr Martin has alerted his parliamentary party to be available to sign off on a deal either on Saturday or Monday. A number of Independent TDs who may join a Fine Gael-led minority government have also been put on standby for further talks over the weekend.

‘Sitting on our hands’

Meanwhile, the deputy leader of Sinn Féin, Dublin Central TD Mary Lou McDonald has aid the party has not been "sitting on our hands" and said it is "disgraceful" that Fianna Fáil and Fine Gael have spent weeks and weeks "shadow boxing".

Speaking prior to the party’s ardfheis in Dublin this weekend, Ms McDonald said Sinn Féin “had talks with other parties and individuals with whom we share common objectives. If someone came from outer space to look at the Irish political situation they would see there are damn all differences between Fianna Fáil and Fine Gael.

“There are significant political differences between them and Sinn Féin. We made pledges before the election. We set out our stall. People voted on that,” she told Newstalk.

She said Gerry Adams would be re-elected as leader of the party this weekend, but he would not be in the position "in perpetuity".