FF AND FG DIVISIONS WORSENING

FINE Gael and Fianna Fáil continued sniping at each other yesterday over the Confidence and Supply deal keeping the Government in power – as the sides tried to negotiate next month’s Budget.

Budget talks got under way yesterday as both sides continued to accuse the other of trying to spark a general election.

Fine Gael insisted it will keep pushing to extend the Confidence and Supply agreement until 2020 but Fianna Fáil said the Budget must be agreed before renewal talks start.

The row began on Tuesday when Leo Varadkar published a letter he had written to Micheál Martin calling for a two-year extension to the deal, citing the need for stability as Brexit looms.

The Taoiseach told reporters ‘We’ll keep asking’ when quizzed on a visit to the island of Inis Meáin, Co. Galway, yesterday. He insisted his offer was ‘not a ruse’ but did ‘exactly what it says on the tin’.

Fianna Fáil delegates arrived at the Department of Finance for talks with Paschal Donohoe yesterday.

Finance spokesman Michael McGrath said any renewal of the deal underpinning the minority Government would be ‘somewhat influenced by the outcome of this Budget’.

But the Finance Minister said: ‘We believe an agreed election date of 2020 is one that will provide the stability that Ireland needs to deal with all that is approaching us.’

Mr Donohoe yesterday said tax breaks, along with social welfare rises, would be on the cards in the Budget.

But there could be an increase in the Local Property Tax on homes.

Mr Varadkar has indicated that any increases in the charges being paid by homeowners are ‘moderate and affordable’.

Fianna Fáil’s Budget focus will be on providing affordable housing, investment in healthcare and disability services as well as an attractive social welfare package.