Fine Gael and Fianna Fáil are at odds over the wording of proposed legislation to provide for the suspension of water charges.
Fine Gael had prepared a Bill to suspend the charges for nine months and to establish an independent commission to consider the charging regime.
However, the legislation did not include the instruction to allow the Dáil decide the outcome of the levies once the commission had reported, instead stating the decision will be made by ministerial order.
The draft Bill also did not allow for further suspension of the levies after the nine months, while the Dáil considered the matter.
Fianna Fáil objected to this, claiming the old charging regime could have been reintroduced at that point.
Papers exchanged
Advisers from both parties continued contact and exchanged papers on Thursday in a bid to resolve the dispute.
Meanwhile, Fianna Fáil TDs have strongly criticised Minister for Health Leo Varadkar for "self-serving" and "Tory-like" comments about the party's position on Irish Water. Mr Varadkar, who is part of the Fine Gael negotiating team in talks to form a government, said it was wrong and not in the public interest to suspend the levies.
Fianna Fáil TDs Robert Troy, Michael McGrath, Billy Kelleher and Willie O'Dea reacted angrily to the statement.
Mr Troy said: “Leo is playing to the backbench TDs. It is quite obvious that the leadership is foremost of his mind.
"Leo is doing the exact same as Boris Johnson is doing with the Tories. It is all about the party leadership. He would be best focusing on the issues facing the health service and the mental health service."
Fianna Fáil Cork North Central TD Billy Kelleher accused Mr Varadkar of hypocrisy. “Fine Gael lost the election and no longer had a mandate to pursue Irish Water and water charges. If he had any shred of credibility he would seek not to serve in cabinet if he believes the deal that he negotiated with Fianna Fáil is so ridiculous and dismal. His hypocrisy knows no bounds.”
Fianna Fáil TD Willie O’Dea also criticised the comments by Mr Varadkar. He said: “This was a serious issue for our voters especially in urban areas. We made a definitive election promise that the charges would be suspended and we are obliged to stick to that promise. He is expressing a view but he signed up to it.”
Fianna Fá
il TD Michael McGrath, who is a member of his party’s negotiating team on government formation, said Mr Varadkar’s comments were unhelpful and self-serving.
‘Not helpful’
He said his party would not “throw the toys out of the pram” over the remarks, but he questioned their purpose.
“The comments were in the context of what is going on internally within Fine Gael. That is clearly our view of the issue. That is not helpful to the negotiations.”
The Independent Alliance is to hold a meeting in Government Buildings today to discuss the provision of broadband. Independent TDs Michael Fitzmaurice, Sean Canney and Kevin "Boxer" Moran are said to be concerned about reports the national broadband plan is delayed for an additional two years.
