The Labour Party is expected to play no further part in government formation talks with Fianna Fáil and Fine Gael, following a meeting of its parliamentary party today.
It is expected that the party leader Ivana Bacik will shortly ring the leaders of Fianna Fáil and Fine Gael to communicate the decision.
Members of the parliamentary party met on Thursday to discuss their options, and decided to exit the talks with Fianna Fáil and Fine Gael.
There was an expectation that the party was on the verge of walking out of discussions late last week – but on Friday, while acknowledging that it was unlikely the party would continue in government, Ms Bacik instead sought a “substantive response” on what she described as key policy priorities for Labour.
These included a more active role from the State in resolving challenges facing the country, a focus on investing in public services and a Programme for Government that included manifesto pledges from Labour.
Among these were the creation of a State-owned construction company, a living wage tied to 66 per cent of median hourly earnings and a publicly-provided universal childcare system.
The move will switch focus to the Social Democrats, who as of this afternoon, remained involved in the talks on potentially forming a government with Fianna Fáil and Fine Gael.
However, there is widespread expectation that these talks will ultimately see that party exit discussions, clearing the way for the next government to be formed between Fine Gael, Fianna Fáil and Independents.
This will take centre stage after the Christmas break, with Independent TD for Tipperary North Michael Lowry on Wednesday indicating that talks would conclude on Friday and resume on January 6th.
Lobbying for ministerial roles has already begun among the ranks of the Regional Independent group, of which Mr Lowry is the de facto leader during talks, although he is not expected to take a formal role within government.
Galway West TD Noel Grealish said in a statement on Thursday that while ministerial roles have not been discussed in the talks so far, “I wish to confirm that I am interested in such a position, if it becomes available at a later stage of negotiations”.
Earlier on Thursday, Labour Party sources indicated that the support of Fianna Fáil and Fine Gael for Independent TD Verona Murphy’s successful campaign to be installed as Ceann Comhairle was a key moment which signalled to the party that its future was outside of government.
This came despite sources saying earlier this week that some progress was being made, particularly with Fine Gael, on overhauling the Land Development Agency, which the Labour Party wants to turn into a State-owned construction company.
“The election of Verona Murphy has probably undermined the process irretrievably,” said one Labour TD on Thursday morning.
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