Updated 16:01
The Minister for Finance has warned that it is 'absolutely crucial' that we have a stable Government in place as Brexit talks enter their final phase.
Paschal Donohoe began negotiations with Fianna Fáil on the upcoming budget this afternoon.
On his way into the talks he warned that an extension of the confidence and supply arrangement will be ‘absolutely crucial’ over the coming months.
It comes after the Fianna Fáil leader Micheál Martin rejected the Taoiseach’s call for talks on an extension and an agreed 2020 date for the next election.
Deputy Martin said there will be no talks until Budget 2019 is agreed and announced.
Stability
Minister Donohoe says the agreement is now more important than ever.
“When this original agreement was put in place, Brexit had not happened,” he said.
“We are now entering into an absolutely crucial period in relation to Brexit negotiations across October, November and December.
“I believe it is in our national interest to ensure that we have a Taoiseach representing Ireland and our island who can be certain that he has political stability here at home.”
Earlier the Minister for Social Protection Regina Doherty described Fianna Fáil’s response to the Taoiseach’s letter as ‘childish’ and warned that, “you don’t leave a contract until its dying days before you start renegotiating.”
Fianna Fail spokesperson on finance Michael McGrath arrives for the first round of budget talks, 05-09-2018. Image: Sam Boal/RollingNews
"Tit-for-tat"
Speaking on his way into the talks, Fianna Fail's Finance spokesperson Michael McGrath said he was not going to “get into a tit-for-tat” over it.
“Our overall assessment of the Confidence and supply agreement Will be somewhat influenced of course by the outcome of this budget,” he said.
“The content of this budget – what we can negotiate by way of improvement in living standards for Irish people and tackling the challenges that the country is facing – will be intrinsic to our overall assessment of the agreement.”
Budget 2019
Meanwhile, Minister Donohoe has been keeping his cards close to his chest when it comes to the Budget.
He has suggested there will be changes to income tax and social welfare and has said he wants to make the first deposit into the country’s planned rainy day fund.
Following the meeting this afternoon, a Government spokesman said the talks were “constructive” with considerable contact expected between the two sides in the coming weeks.
The spokesperson said Minister Donohoe set out the “broad parameters” of the Budget and “listened to what Fianna Fáil had to say.”
A spokesperson for Fianna Fáil said: “We are focused on delivering a budget that is progressive, responsible and tackles the urgent crises in housing, health and education.
“Talks will continue next week”
The budget will be announced on October 9th.
