Insurance plan for new coalition but climate deal still difficult
Sticking points on pensions and refugees
A DRIVE to reduce insurance costs and compensation payouts will be in the new coalition government’s plan.
But there are still major difficulties over carbon emissions and the pension age in the talks between Fine Gael, Fianna Fáil and the Green Party. The ending of direct provision for refugees and addressing the budget deficit are also areas of disagreement.
The precise role of the new agency using State-owned land to build housing is also still not resolved.
Negotiations are entering their crucial final stages with a deal needed next week.
The reduction in greenhouse gas emissions by 7pc each year will be in the document but there are still tensions over how it will be achieved. The level of detail in the programme for government is yet to be determined.
The Green Party also wants an end to the direct provision system for refugees, but the timeline for this to be achieved is a problem.
Fianna Fáil’s biggest issue is now halting the proposed increase in the pension age to 67, which the party promised to reverse in the General Election.
Fine Gael wants the deficit in the public finances addressed in the second half of the government’s term in office.
Taoiseach Leo Varadkar, Fianna Fáil leader Micheál Martin and Green leader Eamon Ryan will try to resolve outstanding issues over the coming days.
Almost 120 days since the election, a new government is needed by the end of the month to pass vital laws.
The coalition has agreed to take measures to reduce insurance costs. A new cabinet sub-committee on insurance will be set up to oversee the plan.
It will examine ways to bring more competition into the sector to bring the price of premiums down. However, there remain concerns about an exodus of insurers due to claims from businesses arising from the Covid-19 crisis.
The parties have agreed the level of compensation payments must be determined by the courts as it would be unconstitutional to instruct judges on awards. Chief Justice Frank Clarke is carrying out a review on compensation awards and to benchmark them against other countries.
The three parties have also agreed to reform the country’s defamation laws, where payouts are also considered to be far higher than international standards.
A review of the media will also take place. The commission on the future of public service broadcasting will be broadened to include print, digital and other broadcasting.
In health, there will be a continued focus on the Sláintecare programme of reforms of the health service.
Fianna Fáil finance spokesman Michael McGrath said a deal for a new government needs to be reached ahead of the deadline at the end of June when legislation, such as the Offences Against the State Act, must be renewed.
Mr McGrath said Fianna Fáil members must vote to approve the deal and admitted there is concern among grassroots members about forming a coalition with Fine Gael.
“We are having extensive engagement with councillors and there are different views but I can tell you one thing, we will not be taking the support of our members for granted.
“Our party is built on the support of our members, so their say is crucial,” he said on RTÉ radio.
Mr McGrath said the deal had to be in place next week.
“The reality for us as a party is that we need at least 10 days to go through the process of giving our members a vote which is their right under our rules. If you take the last week of June as the deadline for having a government then that is a reasonable deadline.
“A deal needs to be done next week. We have days, not weeks, and Fianna Fáil remains committed to doing all we can to get this over the line. The country needs a new government and it needs it soon,” he said.
Finance Minister Paschal Donohoe said he is optimistic a draft government deal can be agreed in the coming days.
However, he said he is not complacent. Mr Donohoe said work will continue into the weekend to get a draft agreed with the three parties so they can put it to their members.
“I am optimistic but at the same time we cannot be complacent. We have this weekend coming up and some very long days ahead,” he said.