Coalition talks tackle mortgage arrears and banking reform

Kenny and Martin to outline parameters of pact for TDs in pursuit of approval

Negotiators from both sides reported good progress in talks between Fine Gael and Independent TDs on the formation of a new government yesterday where significant progress was achieved in the area of banking reform and mortgage arrears.

Ministers remain optimistic that a deal can be agreed in the coming days. The talks will recommence at Government Buildings this morning.

Meanwhile, Fine Gael and Fianna Fail are planning to hold meetings of their parliamentary parties today to discuss last week’s agreement between the two parties.

It is understood leaders Micheál Martin and Enda Kenny will outline the parameters of the deal to their TDs and seek their approval.

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Discussions between Fine Gael and the six TDs of the Independent Alliance on a programme for government began yesterday at 10am and continued for over seven hours.

It is understood a number of rural members of the alliance raised concerns about those on group water schemes in any compromise on Irish Water.

Galway East TD Seán Canney said fairness must be shown to those on such schemes who have paid for upgrades and maintenance.

Stumbling blocks

Roscommon South-Leitrim TD

Michael Fitzmaurice

said there were still a number of “stumbling blocks” in the talks. He said: “Good progress was made but there are still a number of things to be overcome particularly in the area of agriculture, infrastructure and health.”

The two sides also discussed Waterford TD John Halligan’s request for an extension to cardiac services at Waterford Regional Hospital.

It is understood Mr Varadkar told him they were willing to work towards a solution but there are limits to what can be promised on the issue.

Mr Halligan has made clear that the hospital issue is a deal-breaker for him, though other Independent TDs have indicated that the issue would not prevent them from reaching an agreement with Fine Gael on supporting a government.

Fine Gael negotiators then met the five TDs of the looser “rural alliance” group yesterday evening to discuss a range of issues.

After nine weeks of on-off talks between the Government and various parties, both sides suggested that they were anxious to complete the negotiations as soon as possible.

Roscommon TD Denis Naughten, a leading member of the group, said there is a "hunger" among the rural TDs to bring these discussions to a speedy conclusion. He said: "There is a willingness to ensure that we do not delay one hour longer than we have to."

Pat Leahy

Pat Leahy

Pat Leahy is Political Editor of The Irish Times