Fianna Fáil and Fine Gael talks may begin after Dáil resumes - Noonan

Discussions between Taoiseach Enda Kenny and Fianna Fáil leaders are likely to begin after Thursday, Minister for Finance Michael Noonan has said, as he warned a protracted period without a government could affect investor confidence.

Speaking in Brussels where he attended a meeting of euro zone finance ministers, Mr Noonan said the priority was to take all steps possible to form a government.

“The Taoiseach has got involved in a series of discussions, starting with individual Independents and smaller parties, and that will evolve after Thursday into discussions with Fianna Fáil and then we’ll see where that goes.”

Mr Noonan echoed Mr Kenny’s view that a taoiseach was unlikely to be elected when the new Dáil meets for the first time on Thursday.

National interest

He added: “I think the important thing now is to form a government in

Ireland

as quickly as possible – that’s what’s in the national interest. The personalities are secondary to the national objective of having a government that reinforces confidence in Ireland, and makes sure we can continue with the very successful progress we have made, especially over the last two years.”

Mr Noonan said while there appears to have been no adverse reaction thus far on international markets to the election’s inconclusive outcome, a protracted period without a government could lead to a rise in bond prices.

He warned Ireland might miss its deadline to submit its spring economic statement to the European Commission.

“It will be dependent on the formation of the government ... because whatever is in the spring statement will be the boundaries for the incoming government, and whoever is in the incoming government will want to participate.”

Ireland is obliged to submit a spring economic statement to the commission.

Balanced budget

On Irish Water, Mr Noonan said

Fine Gael

remained committed to an Irish water utility. “It’s on the balance sheet already,” he said. “We can afford it, and we are planning a balanced budget in 2018.”

He said Ireland had a derogation from EU legislation up to 2010 but that derogation was ended by the previous Fianna Fáil-Green Party government, so under European law water must be charged for.

“Fine Gael’s position is that we want a national utility for water, rather than it reverting to local authorities, and we want water charged for and it’s within that space that any discussions with a future partner in government would have to take place.”

Asked if he would be willing to compromise on the structure of Irish Water as part of government formation negotiations he replied: “Not on the structure, but obviously there are issues around the edges that could be discussed.”

Asked whether the controversy about the amount of fiscal space available to the next government had affected the election result, Mr Noonan said the figures presented by the Department of Finance had been correct.