FG-FF deal: Kenny and Martin to step in if accord ‘undermined’

Fine Gael leader Enda Kenny and Fianna Fáil leader Micheál Martin will personally resolve any differences that arise between their two parties if anything happens to undermine their deal struck last week.

The Fine Gael and Fianna Fáil parliamentary parties are currently being briefed on the contents of the Fine Gael-Fianna Fáil deal, which will allow Mr Martin facilitate Mr Kenny's re-election as Taoiseach in Leinster House.

The document is understood to be eight pages and 2,000 words long, which deals with the mechanics of how a minority government arrangement will work and broad policy areas.

It is called: "A Confidence and Supply Arrangement for a Fine Gael-Led Government."

It says that Fine Gael will be able to seek separate policy commitments from other parties for a programme for government.

It sets out the ground rules between the two parties, and both Fianna Fáil and Fine Gael give specific commitments on how the arrangement will operate.

It adds, however, that “should an event arise that has potential to undermine this agreement efforts will be made to have it resolved by the two party leaders”.

Economic commitments include a split of 2:1 of available resources between public spending and tax cuts, a five-year HSE service plan, USC reductions focused on low and middle income earners, the and establishment of a “rainy day fund”.

A public service pay commission will be established and the Financial Emergency Measures in the Public Interest Acts are to be repealed gradually and by negotiation.

Fianna Fáil agrees to “abstain in the election of Taoiseach, nomination of Ministers and also the reshuffling of Ministers; facilitate Budgets consistent with the agreed policy principles attached to this document; vote against or abstain on any motions of no confidence in the Government, Ministers and financial measures (eg money bills) recognised as confidence measures; and pairing arrangements for EU Council meetings, North South meetings and other Government business as agreed”.

Fine Gael will also agree to publish all agreements with Independent deputies and other political parties in full.

The policy areas agreed between the two parties are on "Industrial Relations and "Public Sector Pay"; "Securing Affordable Homes and Tackling Homelessness"; "Creating Decent Jobs and Supporting Enterprise"; "Cutting Costs for Families and Improving Public Services" and "Tackling Crime and Developing Community Services".

There is also an entire separate appendix on the agreement reached on water charges.

This includes the establishment of an “external advisory body on a statutory basis to build public confidence in Irish Water”.

This will advise every three months “on measures needed to improve the transparency and accountability of Irish Water”.

The €100 water conservation grant is to be scrapped, and charges will be suspended within six weeks of a government taking office. The external commission on water charges will be established two weeks later.

"The recommendations of the Expert Commission, will be considered by the Special Oireachtas Committee which will endeavour to make its own recommendations to the Oireachtas within a period of three months," the agreement says. It also includes a draft terms of reference for the commission.

“The recommendations of the Special Oireachtas Committee will be considered and voted upon by the Oireachtas within a one month period.”

However, it adds: “The Fine Gael and Fianna Fáil parties reserve their right to adopt differing positions on any consequent legislation or resolutions being debated by the Oireachtas.”

The agreement also says that “those who have paid their water bills to date will be treated no less favourably than those who have not”.

On Industrial relations, it says both parties recognise the” full implementation of the Lansdowne Road Agreement in accordance with the timelines agreed and recognise that the recruitment issues in the public service must be addressed as part of this agreement”.

It further says that a public service pay commission be established to “examine pay levels across the public service, including entry levels of pay”. The deal also commits to tackling the “problems caused by the increased casualisation of work that prevents workers from being able to save or have any job security”.

It also says that the "Workplace Relations Commission and the Labour Court as the proper forum for state intervention in industrial relation disputes and ensure that both bodies are supported and adequately resources to fulfil their roles".

On housing it commits to significantly increasing and expediting “the delivery of social housing units, remove barriers to private housing supply and initiate an affordable housing schemes”.

Mortgage interest relief will also “retain mortgage interest relief beyond the current end date of December 2017on a tapered basis”.

Rent supplement and Housing Assistance Payment limits will increase “by up to 15 per cent, taking account of geographic variations in market rents, and extend the roll out by local authorities of the HAP, including the capacity to make discretionary enhanced payments”.

It also commits to protecting the “family home and introduce additional long term solutions for mortgage arrears cases” as well as “greater protection for mortgage holders, tenants and SMEs whose loans have been transferred to non-regulated entities (‘vulture funds’)”.

Supports for “older people to live independently in their own home, including a provision for pension increases” will be improved.

On the subject of crime, Garda numbers will be increased to 15,000 and there will be investment in CCTV.

The new Policing Authority will be mandated to "oversee a review of the boundaries of Garda districts and the dispersement of Garda stations".

A Judicial Appointments Commission will be established to "identify the most suitable candidates for judicial office".

On improving public services, it commits to “targeted supports to reduce childcare costs, broaden parental choice and increase supports for stay at home parents” and to “maintain a humane approach for discretionary medical card provision”.

It will also "tackle child poverty by increasing community based early intervention programmes" and "increase and ring-fence €15m in 2017 in funding for a National Treatment Purchase Fund to urgently address waiting lists for those waiting longest".

Other commitments include a reduction in “primary school class sizes; reintroduce guidance counselling to secondary schools and increase financial supports for post graduate students with a particular focus on those from low income households”.

There is a promise to “take all necessary action to tackle high variable interest rates” and to “ “seek to alleviate pressures affecting household budgets across energy, childcare, medical and insurance costs”.

The arrangement will be reviewed at the end of 2018, which should allow a Fine Gael led minority government introduce three budgets.