Senior government figures have clashed at Cabinet over the county's housing plan in what has been described as the most serious row of the uneasy Fianna Fáil-Fine Gael coalition to date.
As the Irish Examiner reports, the two largest pillars in the three-party government are understood to be completely at odds over the multi-billion euro 'Housing for All' plan
The dispute is so severe over the budget for the scheme that the Government has failed to agree its summer economic statement (SES), the traditional prelude to the budget.
Taoiseach Micheál Martin and Minister for Finance Paschal Donohoe have clashed at Cabinet budget for the housing plan, which resulted in a scheduled memorandum on the SES failing to make it onto the agenda.
A “genuine stand-off” emerged at Cabinet when a “visibly irked” Mr Donohoe made it clear that the SES was not agreed and the failure to bring it to Cabinet risks undermining the fiscal credibility of the Government.
“The Government was not able to deliver on its statement setting out the budgetary parameters as it said it would because of this row, so it is pretty serious,” said one Cabinet source.
Stern warning
Mr Donohoe is understood to have given a "pretty stern" warning on funding the plan, resulting in the Taoiseach going "toe to toe" with the Fine Gael finance minister.
Mr Donohoe said the funding for the housing plan “must be agreed” as soon as possible.
On a previous occasion, Mr Martin had sided with Mr Donohoe and Public Expenditure Minister Michael McGrath on the need for fiscal discipline, but yesterday, he “sided” with Housing Minister Darragh O’Brien, sources suggested.
Several Cabinet sources confirmed the “pointed” exchanges between Mr Martin and Mr Donohoe.
Agreement has not yet been reached on the level of funding to be committed to the delivery of housing and as a result, an additional Cabinet meeting will be required later this week to sign off on it.
A series of emergency meetings between officials and Mr Martin, Tánaiste Leo Varadkar, Green Party leader Eamon Ryan, as well as Mr Donohoe, Mr McGrath, and Mr O’Brien will now take place in order to resolve the stand-off.
At least one other Cabinet meeting will be required to resolve the matter before the end of the week.
