Emissions targets still key sticking point as deal nears

TARGETS for cutting carbon emissions, a demand to end the direct provision system, and plans for cutting the deficit remain key sticking points as government formation talks reach a crunch stage.

The Green Party is still fighting for some of its key demands amid massive concerns that a programme for government won’t be approved by its membership in the coming weeks.

There were growing expectations on all sides that a deal will be struck as negotiations continued last night.

Green Party sources suggested a programme for government would be thrashed out, while conceding it was an open question whether it would win the two-thirds majority of the party’s members needed for it to be ratified.

A Green Party source said: “One way or another there will be a deal. The question is, will it be a good enough deal?”

The Greens have dug in on demands for a 7pc-a-year reduction in carbon emissions.

Another “big issue” is said to be concern that Fine Gael’s plans to reduce the huge deficit that will arise from the coronavirus crisis will mean a return to the kind of austerity seen after the last recession.

Taoiseach Leo Varadkar last night insisted it remained a priority for Fine Gael to reduce the deficit when the country returns to economic growth and low unemployment rates.

He said: “The best way to avoid a return to austerity is to start to bring your debt down... when you can afford to do so.”

In terms of a deal getting past the party’s membership, the Green Party source said: “It’s going to be close” and “the devil’s in the detail”.

The source said the party would want to see strong commitments on issues like reducing emissions and abolishing the direct provision system for asylum seekers.

The source suggested the party’s membership of around 2,700 would question if it was a good deal if it did not have a “ringing endorsement” from Green TDs and senators.

The Greens’ parliamentary party will have the first say on the document and there will be much focus on where deputy leader Catherine Martin stands.

She is leading the party’s negotiating team but had originally been against entering talks with the two bigger parties.

The party is also in turmoil over Ms Martin’s challenge to Mr Ryan’s leadership.

Fianna Fáil was perhaps the most upbeat on the prospect of a deal.

“A lot of the issues are coming together,” was the assessment of one senior source.

“Good progress” is said to have been made on housing, though the Green Party still has strong reservations over the use of the Land Development Agency, as favoured by Fianna Fáil and Fine Gael, to ramp up supply.

The Fianna Fáil source said they expected only a handful of issues to be kicked up to the three party leaders for final discussions. One issue expected to be on the agenda for final resolution by Fianna Fáil leader Micheál Martin, Mr Varadkar and Mr Ryan is Fine Gael’s demand there be no income tax or USC increases in the coming years.

Speaking after Cabinet, Mr Varadkar said there was a “strong possibility” a deal will be struck in the coming days.

He also sought to allay fears in the farming community over how efforts to reduce carbon emissions will affect the agriculture sector.

Mr Varadkar said he hoped they would be “pleasantly surprised” by the potential programme for government.

He said issues being focused on include the National Broadband Plan and how investment in rural infrastructure, including road projects, should continue.

Fine Gael also wants reforms that will give farmers more reliable and new streams of income for farming practices that help climate action and biodiversity.

Mr Varadkar said of the talks: “I know it’s taking a long time but... it’s better to nail down some issues now, rather than have them become points of conflict during a five-year government.”