Simon Coveney plays hardball with Fianna Fáil over rent cap

Tensions with Fianna Fáil tackled as Minister for Housing attempts to call their bluff

It was a fight that was coming, but it brought a cargo of subplots and consequence upon its arrival.

For weeks, if not months, resentment has been building in Fine Gael because of the belief of many in the party that Fianna Fáil has had it too good.

Thanks to the confidence and supply deal, Fianna Fáil has been able to dictate the shape of government policy while acting as a curious and at times appalled bystander.

Many in Fine Gael felt it was time Micheál Martin and his spokespeople were reminded who actually is in government, having cowered for so long. They were spoiling for the fight.

READ MORE

"We need to show some balls," said one female member of the Cabinet at lunchtime in Leinster House yesterday.

When Simon Coveney outlined his plan for maximum annual rent increases of 4 per cent, to apply immediately for a three-year period in Dublin and Cork city and possibly be extended to other pressure points nationally, Fianna Fáil raised objections within hours.

Where the Minister for Housing wanted a maximum 4 per cent annual increase, Fianna Fáil favoured 2 per cent.

Further rollout

Fianna Fáil also wanted the initial rollout of the rent caps to be extended beyond Dublin and Cork, and to take in Galway, Limerick, Waterford and commuter areas around the capital.

It seemed that the usual give and take between the minority Government and Martin’s party would apply. One wants 4 per cent, one wants 2 per cent: split the difference and move on.

Yet the Government had a different idea. The great irony was the person who put it up to Fianna Fáil was not the aspirant Fine Gael leader many expected to be at the centre of major disputes between the two parties.

Leo Varadkar is known to have little love for the current governmental arrangement and some in Fianna Fáil suspected it would be the Dublin West TD who would cause them most grief.

They had not anticipated that Simon Coveney would be the one to play hardball. Fianna Fáil TDs around Leinster House looked rattled for the first time in months.

So many issues were at play: the rental strategy itself and its core proposals, the dynamic in the Fianna Fáil-Fine Gael relationship and Coveney’s leadership prospects, and his standing in the parliamentary party.

Leadership chances

He is considered to be behind Varadkar among TDs, but should Coveney stand up to Fianna Fáil and win, his leadership chances will surely be enhanced.

He has staked his ambitions on tackling big issues like housing and water and the rental plan is a huge element of what he hopes will be his calling card as a serious contender.

The Cork South Central TD has expended a huge amount of political capital on rent predictability, overcoming the concerns of the most significant players around the Cabinet table: Enda Kenny, Michael Noonan, Paschal Donohoe and Varadkar himself.

As he prepared to attempt to face down Fianna Fáil, the only question yesterday was whether Coveney had the backing of the Taoiseach.

Kenny gave his clear answer at the outset of the weekly meeting of the Fine Gael parliamentary party, amplifying Coveney’s tactic by telling TDs and Senators in his leader’s statement that the Government would withdraw the strategy unless Fianna Fáil backed it.

Fine Gael had called the bluff of Martin and Barry Cowen, his housing spokesman, gambling that Fianna Fáil would be blamed if private rental tenants suffered. Even if that gamble fails, Coveney has still won in one crucial way: he has given his TDs the fight with Fianna Fáil they were pining for.