Fianna Fáil needs to clarify its stance on Irish Water ahead of any discussions on the formation of a government, Minister for Transport Paschal Donohoe indicated on Saturday.

Mr Donohoe was responding to reports that suggested Fianna Fáil viewed the parties’ positions on water charges as the biggest obstacle to doing a deal with each other.

Reports on Saturday said Fianna Fáil would demand the suspension of water bills when acting Taoiseach Enda Kenny contacts it to seek party leader Micheál Martin's consent for a minority government.

Speaking outside his department on Kildare Street on Saturday, Mr Donohoe said the discussions that had taken place to date with independents and smaller parties had been “constructive” and he expected they would continue across next week.

“The first phase... is to sit down and to negotiate issues with parties and with independents who have said they are willing to do so. That is now what we are doing. We are having those discussions in good faith with them,” he said.

“We have also indicated that at a point when we have advanced those discussions with independents and other parties, there will be a need to sit down with other like-minded parties, that will include Fianna Fáil.

“The Taoiseach has made it clear that is his intention. But in order to do that, first we have to establish whether a common policy platform does exist between ourselves, independents and other parties.”

Mr Donohoe said it was “very unclear” to him what Fianna Fáil’s stance on Irish Water was now.

“Across the election period they indicated one thing. In the aftermath of the election period they indicated another thing and they now appear to be saying something completely different today.”

Mr Donohoe said Fianna Fáil had advocated “a number of different views” in recent weeks on Irish Water.

"They need to clarify finally what their stance is in relation to it. The Fine Gael stance on this is very, very clear. We believe that Irish Water can play a vital role in making sure that we have safe and secure water for Ireland for the future and we emphasised that during the election period. That continues to be our view."

He said what Fine Gael needed to do and continued to do was to engage in discussions “with parties and individuals that want to talk with us”.

“We are doing this with a view to trying to put together a stable government…for our country.”

Asked how optimistic he was that a viable government could be formed, Mr Donohoe said: “I think it’s going to be very difficult in the coming weeks to put together a government that can respond back to the difficulties and the opportunities that our country does have, but it can be done.”