Varadkar may merge departments if elected taoiseach

Minister considers combining portfolios of finance and public expenditure if FG leadership bid successful

Fine Gael leadership contender Leo Varadkar is considering merging the Departments of Finance and Public Expenditure into one if he wins the upcoming contest to succeed Enda Kenny.

Such a move would increase speculation in the party that the current Minister for Public Expenditure, Paschal Donohoe, would back Mr Varadkar and take over a reconfigured Department of Finance.

Mr Donohoe has thus far declined to say which leadership candidate he intends to support in the Fine Gael contest.

A source close to Mr Varadkar said he has not yet “signed off” on the proposal, and has yet to decide if it would be done immediately if he took over as Taoiseach, or if it would wait until after the next election. It would also allow for the creation of another full Cabinet position for another Fine Gael TD.

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The source added that it is not yet decided if the departmental configuration would be changed before a general election, which could be “very disruptive”. It was described as an “idea that’s floating around”.

Early drafts of the last Fine Gael general election manifesto are understood to have contained a commitment to review the operation of the two departments, with a view recombining them.

Offending Labour

This promise was, however, taken out of the final document to prevent offending the Labour Party, with whom Fine Gael wanted to return to power in another coalition.

Labour leader Brendan Howlin was Minister for Public Expenditure in the last government. The old Department of Finance was divided between Fine Gael and Labour in 2011, partly because both parties were strong elements of that coalition government.

Some supporters of Minister for Housing Simon Coveney have floated the idea of keeping Michael Noonan in the Department of Finance until the next election, if Mr Noonan publicly declares for Mr Coveney.

As a former Fine Gael leader, Mr Noonan is not expected to declare for any candidate, in line with past practice. During the failed 2010 heave against Mr Kenny, Mr Noonan kept his counsel, yet was promoted afterwards to the position of finance spokesman in Opposition, which led to him becoming Minister for Finance.

However others close to Mr Coveney have stressed the need for “generational change” in the party, and Mr Noonan is widely expected to step aside at the same time as Mr Kenny leaves the Taoiseach’s office.

Senior Ministers expect Mr Kenny to stand down as Fine Gael leader after the April 29th European Council summit, although he would remain on as Taoiseach during the three-week leadership contest.

Mr Kenny has said he will deal with the issue of his leadership after that summit, which will set the parameters of the Brexit negotiations.