Taoiseach Enda Kenny has described the minority government agreement between Fine Gael and Fianna Fáil as "very clear", following media reports of a threatened veto by Micheál Martin's party.

Mr Kenny said, of Fianna Fáil: “I respect it’s not easy for any party to have such a change in their situation.

“We have an agreement and we will honour that agreement and I said to Micheál Martin and others - good faith and no surprises and we will supply the information and consult where appropriate and necessary.”

Mr Kenny was speaking to reporters following a meeting of 500 Fine Gael members in the Sheraton Hotel, Athlone, about the party’s future direction and how it planned to make a minority government work.

Asked about weekend media reports that Fianna Fáil threatened to veto key government policies, including its plans for the Universal Social Charge, Mr Kenny said: “The agreement with Fianna Fáil is very clear - three budgets and supply and confidence votes.”

Earlier on Sunday, Fine Gael Minister for Social Protection Leo Varadkar had responded to the reports that Fianna Fáil planned to block initiatives.

“If Fianna Fáil and Sinn Féin come together, as they would have to to vote something down, it’s up to them to explain to the public why they didn’t support our proposals, because the only proposals we’re going to put forward are the ones we believe are in the interests of the people.”

Fine Gael Minister for Foreign Affairs Charlie Flanagan also said it was absolutely essential that all parties, whether in or out of Government, "commit themselves to ensuring we have a Government".

He said his party had agreed certain measures with Fianna Fáil, “but it’s fair to say that there hasn’t been much work done over the past couple of months”.

He said the minority government would “obviously need an element of trust between Opposition and Government that we haven’t had in the past.

“I look forward to this new challenge, where we will see politics being done much differently in terms of how we do our business and everybody will have to adapt to this new dispensation.”

‘Very cynical’

Former minister Dr James Reilly also responded to the reports, saying: "I'm very cynical about Fianna Fáil, yes, but at the same time I'll give everybody a fair chance and a fair wind and I believe if they do the same then I believe the people of this country will be well served."

Dr Reilly said the bottom line was that Fine Gael would continue to do the right thing by the country.

“If Fianna Fáil wants party opportunism politics - which they profess they don’t but invariably that is the way they act - well then the people will be entitled to judge them when the next election comes.”

Dr Reilly said Fine Gael wanted the Government to go the full distance. He said he believed the Independents in Government were also very much committed to this goal.

“So really the finger and the microscope and the camera should be on Micheál Martin and his lieutenants and test the real credibility and the genuineness of their newfound sense of fairness, which certainly wasn’t reflected in their 14 years of government and their golden circle.”

Fine Gael councillor Noel O'Donovan from west Cork said: "I hope Fianna Fáil will hold the line.

“There’ll be a judgment day hopefully three years down the road, maybe a bit longer.”

He said that while there had been an economic recovery, it had not had as much of an impact in rural areas, and the new Government would have to focus on remedying this situation.

Seanad nominations

In a separate development, Dr Reilly, who lost his Dublin North Dáil seat in the general election, described as “pure speculation” reports that he would be one of the Taoiseach’s 11 nominees to the Seanad.

There is speculation the Taoiseach may include former Cork South West TD Noel Harrington, who also lost his Dáil seat in the recent vote, in the nominees.