9pc Vat rate for the food, hospitality and services sector to be restoredThe Regional Independent group has secured two ‘super junior’ ministries and two other junior ministriesFianna Fáil will have eight full ministers at Cabinet to Fine Gael’s seven ministersForeign Affairs to take in Trade as Fine Gael leader repeats Eamon Gilmore briefExpanded Public Expenditure Minister role with infrastructure, reform and digitalisation
The rate was cut to 9pc to support the sector during the pandemic before being restored to 13.5pc.
The food and hospitality sector has long-called for the lower 9pc Vat rate to be reinstated as they claim operating costs for produce, wages and energy bills have risen with inflation in recent years.
Agreement has now been reached between Fianna Fail and Fine Gael to return to the lower the 9pc Vat rate as part of the Budget process.
This will be overseen by the new Finance Minister which is expected to be Paschal Donohoe.
It comes after an agreement was reached between Fianna Fail, Fine Gael and the Regional Independent Group earlier today, paving the way to the formation of the next government.
As the draft programme for government is finalised, it has been confirmed that two Independent TDs have been given two super junior ministerial roles.
Galway East TD Seán Canney and Galway West deputy Noel Grealish will be the two ministers at the Cabinet table.
Sligo–Leitrim TD Marian Harkin and Longford–Westmeath TD Kevin ‘Boxer’ Moran will hold junior ministerial roles.
The negotiating teams in Fianna Fail and Fine Gael have ended their discussions with the group, with the hope to have a draft programme for government document ready for publication soon.
Danny and Michael Healy-Rae are “still in the process” of thrashing out a deal and may still join regional Independent TDs in government, according to sources.
Seán Canney said tonight that having a seat at the Cabinet table is a “great advantage”.
He told RTÉ’s Prime Time programme: “What we wanted to do was to make sure we had strong representation within the Cabinet where decisions are made; that we would have access to Cabinet and that we would be involved in participating fully in Cabinet.
“The fact that we’re super junior ministers as opposed to full senior ministers doesn’t diminish the influence we will have. Having two people there, working together with Fianna Fáil and Fine Gael is a great advantage. We have inputted a lot into the programme for government.”
It comes as Simon Harris’s plan for a ‘minister for infrastructure’ has been ditched in a compromise deal during talks to form a coalition.
Micheál Martin will get two extra Cabinet ministers for Fianna Fáil in the carve-up of positions.
Fianna Fáil will now have eight full ministers to Fine Gael’s seven. Fianna Fáil’s roles will include an expanded minister for public expenditure, to include infrastructure, reform and digitalisation.
A new unit, with more staff in the existing department, will be set up to focus on delivery of infrastructure projects.
The brief of finance minister will go to Fine Gael, with Paschal Donohoe again expected to take up the role. It is expected that Jack Chambers will move to the expanded public expenditure role.
Taoiseach Harris wanted to create a new standalone Department of Infrastructure, Climate and Transport. Fine Gael’s general election manifesto said this would allow for more efficient delivery of major projects as well as supporting delivery of housing and climate targets.
But Mr Martin, the Tánaiste, was opposed to the move and has vetoed it.
The Fianna Fáil leader felt it would hamper the delivery of schools, roads and hospitals by lumping them into one office and giving line departments no responsibilities.
The changes to individual departments are still being discussed in talks to form a coalition.
Trade will move to the Department of Foreign Affairs from the Department of Enterprise.
The same switch happened when Eamon Gilmore was Tánaiste and Minister for Foreign Affairs in the post-economic crash coalition of Fine Gael and Labour.
Mr Harris is expected to take up the Foreign Affairs brief next week and putting trade policy into Iveagh House is a way to beef up the role.
Sunday Independent/ Ireland Thinks Poll shows post-election bounce for Fianna Fáil and Fine Gael but support drops for Independents
The details around the break-up of the Green Party’s portfolios is still being worked out. Immigration is expected to move from the Department of Children to the Department of Justice, becoming an adjoining Department of Domestic Affairs.
Tourism is supposed to move from the Department of Culture to the Department of Enterprise.
The most significant moves will be around the dismantling of Eamon Ryan’s former briefs focusing on Climate, Energy and Transport.
The share-out of the Greens’ cabinet seats between Fianna Fáil and Fine Gael gives plenty of room for promotion to Mr Martin and Mr Harris.
The pair already had vacancies after Health Minister Stephen Donnelly lost his seat. That left a Fianna Fáil space to be filled, while Social Welfare Minister Heather Humphreys has retired on the Fine Gael side.
Talks are also continuing with the Healy-Rae brothers, but it is not clear if Michael and Danny will be signing up
The Regional Independents TDs group, headed by Michael Lowry, will get two super junior ministries, allowing them seats at the Cabinet table.
There are three such roles sitting at Cabinet. Fianna Fáil will keep one as the Government Chief Whip goes with the Taoiseach.
The Independents will also get two junior ministries.
Talks are also continuing with the Healy-Rae brothers, but it is not clear if Michael and Danny will be signing up to support the Government.
Coalition sources say they are neither in nor out at present. Contrary to some speculation, a cabinet place is not on offer for Michael Healy-Rae.
The deal is expected to be finalised in the next 24 hours to allow it for approval by Fianna Fáil and Fine Gael TDs on Wednesday night.
The coalition parties also have meetings lined up this weekend for party members to vote on the deal.
Kerry TDs Michael Healy-Rae and his brother Danny are involved in talks about a new government. Photo: PA
The clock is ticking as a final programme for government will have to be produced before any of the ratification processes can begin.
After the agreement is in place, Mr Martin and Mr Harris will have to focus on who to appoint to cabinet. There is plenty of speculation about who is going to be in and out.
Mr Harris is expected to retain Mr Donohoe, deputy leader Helen McEntee, Peter Burke and Patrick O’Donovan in cabinet
On the Fianna Fáil side, Mr Chambers, Darragh O’Brien and Norma Foley – all cabinet members in the outgoing government – are safe.
But there is uncertainty around Charlie McConalogue, with talk of him being dropped from cabinet. In the contest for promotion are junior ministers Dara Calleary, Mary Butler, James Browne, James Lawless, Niall Collins and backbencher Timmy Dooley.
In Fine Gael, Mr Harris is expected to retain Mr Donohoe, deputy leader Helen McEntee, Peter Burke and Patrick O’Donovan in cabinet. The focus on elevation to the senior ranks is on Jennifer Carroll-MacNeill, Hildegarde Naughton and Martin Heydon.
Half of Fine Gael’s TDs retired at the general election, meaning half of Mr Harris’s deputies are newly elected. The Fine Gael leader is likely to have to promote some new TDs to the junior ministerial ranks, such as former Senator Jerry Buttimer.
