FF on side of angels over vulture funds

Leo Varadkar was just short of offering Michael McGrath a Fine Gael membership form during the usually combative Leaders’ Questions session earlier this week, as he effusively praised the Fianna Fáil finance spokesman’s work on vulture funds.

Fianna Fáil, off the back of a number of opinion polls giving Fine Gael a lead of as much as 11 points, knew it was on the right side of the political argument, as public concern mounted over the sale of billions of loans by Permanent TSB.

Vultures seem the most likely buyers, although Varadkar said other financial institutions may show some interest.

McGrath has correctly pointed out the confidence-and-supply agreement commits both Fine Gael and Fianna Fáil to “provide greater protection for mortgage holders, tenants and SMEs whose loans have been transferred to non-regulated entities (‘vulture funds’)”.

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While Fianna Fáil would clearly like a row on the issue – when it can cast itself on the side of the angels – it is extremely unlikely to push the confidence-and-supply agreement to the point of collapse.

Nevertheless, party sources say the Government must, at a minimum, agree to the measures in McGrath’s Private Member’s Bill to be taken next week. It calls for vulture funds to be regulated by the Central Bank.

McGrath met Minister for Finance Paschal Donohoe yesterday in an attempt to find a common approach. It is understood that the opening talks were largely exploratory.

Against Varadkar's warm words, and Donohoe's statement that he will look at the existing regulatory framework around vulture funds, Government sources say although they are open minded on McGrath's proposals, they could still oppose them if they believe they are ineffective.

The Government has said the Central Bank already regulates credit-servicing firms, rather than the owner of the fund that makes the key decisions.

In The Irish Times today, Cliff Taylor asks what else can be done to protect mortgage holders, while Harry McGee says vulture funds get a bad press.

It also looks as if PTSB will snub calls to answer questions on the issue at the Oireachtas finance committee.

Further talks are expected before McGrath’s Bill is taken next week. Even though some class of a deal still looks likely, don’t be surprised if there are a few bumps on the way.

Parties breath a sigh of relief over Michael D

You could almost hear the sigh of relief on both Upper and Lower Mount Street, where Fine Gael and Fianna Fáil have their respective party headquarters, as it became clear Michael D Higgins wants a second term in Áras an Uachtaráin.

Senior figures in both parties would prefer to avoid an expensive presidential contest later this year, even though, late last year, Fianna Fáil flirted with the idea of standing someone against Higgins.

Similar sentiments were expressed yesterday by Fine Gael MEP Sean Kelly and Fianna Fáil TD Eamon Ó’Cúiv, both of whom have been linked to a run the park.

Both say they will not stand against Michael D, although Independent Senator Gerard Craughwell insists he will gather the required 20 signatures to secure a nomination.

Michael D is in Greece this week and is expected to take questions from the media today, but he is unlikely to say anything concrete on his future intentions.

Interestingly, one argument made in recent months by those in favour of a second term for Michael D is taken up by Patsy McGarry in today’s Irish Times.

McGarry writes that the President's family background – with his father and uncle on opposite sides of the Civil War divide – gives him the perspective to guide the State through the next phase of centenary commemorations.

Of course, portraying himself as someone who can play a neutral hand during commemorations for the Civil War allows Higgins to cast any potential Fianna Fáil or Fine Gael opponent as an unwise choice for the electorate, given the sensitivities of the coming years.