The deal to put in place a minority government could trigger the abolition of water charges, a measure that must be supported by Fine Gael under the terms of the agreement.
Fianna Fail and Fine Gael were allowed their first look at the seven-page document which underpins the deal last night, entitled “Confidence and Supply Arrangement for a Fine Gael-led Government”.
The framework on how a minority government would work was negotiated between the two parties during a two-week period last month. Talks broke down on two occasions.
The document contains an outline of how a minority government would work and a range of 31 polices that will be implemented over the lifetime of the next administration.
Micheál Martin’s party has agreed to four specific core principles in order to facilitate the formation of a minority government.
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The party will abstain from the election of a taoiseach, the nomination of ministers and also the reshuffling of ministers. This means that Enda Kenny will become the next taoiseach as long as he has the backing of his own party and at least another six independents.
Fianna Fail will also facilitate budgets in line with the policy principles that have been agreed as part of their deal with Fine Gael. It will also vote against or abstain on any motions of no confidence in the government, ministers and financial measures and agree to pairing arrangements for government business. This means that a government will not lose a vote if some of their ministers are abroad or undertaking their official duties.
Fine Gael has agreed to seven core principles under the terms of the deal.
The party has accepted that Fianna Fail is still in opposition, and recognises its right to introduce policy and legislation in line with commitments in its manifesto. It has said that it would publish all agreements with independent TDs and other political parties in full. It will also allow any opposition bills that pass the second stage to proceed to the committee stage within ten working weeks. This will speed up the implementation of new laws that are tabled by opposition TDs.
Mr Kenny’s party has also agreed to implement 31 policy principles that were agreed with Fianna Fail over the full term of government.
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The document stresses that Mr Kenny and Mr Martin will meet to resolve any issues that threaten to undermine the agreed principles. The political arrangement will be written and signed by both leaders and will be reviewed at the end of 2018.
Two appendices attached to the document outline some of the policy issues that arose during negotiations. Details on the most controversial element of the deal, concerning Irish Water, revealed that it will be retained as a single national utility in public ownership and will be responsible for the delivery of water and wastewater services.
“The government will establish an external advisory body on a statutory basis to build public confidence in Irish Water,” the document states. “It will advise on measures needed to improve the transparency and accountability of Irish Water.”
Within six weeks of its appointment, the government will introduce legislation to suspend domestic water charges for a period of nine months.
“The suspension of domestic water charges will be extended by the government if this is required and requested by the special Oireachtas committee,” the document said.
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In a sign of the parties’ difficulties in agreeing the deal, the document states that Fine Gael and Fianna Fail “reserve their right to adopt differing positions” on any consequent legislation or resolutions being debated by the Oireachtas.
In the document there is a firm commitment that the minority government must facilitate the passage of legislation to implement any recommendations about water charges. This includes the abolition of charges or a reformed fee system.
However, the document does not make clear how residents who have been paying the charges will be refunded.
“We affirm that those who have paid their water bills to date will be treated no less favourably than those who have not,” it states.
Plans for a public service pay commission are also outlined in the framework. The financial emergency measures in the public interest legislation, which underpinned public-sector pay reductions, will be gradually repealed through negotiations.
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There will be a 2:1 split between investment in public spending and tax reductions and a health-spending “base” along with a five-year HSE service plan based on “realistic and verifiable” projections.
Reductions in the Universal Social Charge will be introduced “on a fair basis” with an emphasis on low and middle-income earners while a “rainy day” fund will also be established to protect the economy from any economic setbacks.
The construction of social housing units will be “significantly expedited”, an affordable housing scheme will be initiated and barriers to boosting private housing supply will be boosted.
The rent supplement and the housing assistance payment will be increased by up to 15 per cent. Increased capital investment in transport, broadband, education, health and flood defences were also set out in the document.
See Now nurses’ union demands pay increase in this section and Sarah McInerney in Opinion