THE DEPARTURE OF Paschal Donohoe from Irish politics is being described by senior ministers in both Fianna Fáil and Fine Gael as a “blow” to this government and “not good news”.

While it was not a total surprise that Donohoe would one day head for pastures new, the news he was quitting for a job in the World Bank did come as a surprise to many this morning.  

Just a year into this new government and just over a month after its first budget, to have such a heavy-weight political operator such as Donohoe leave the stage will no doubt cause a shift. 

As one minister said today, Donohoe was the “problem solver” who often used back channels between the two coalition parties, and independents in government, to get things over the line. 

He was the “hand on the tiller”, they said, stating that he was the “calm head” in Fine Gael. 

When things get heated in government over some decisions, big or small, Donohoe, is the steady hand, said another source. With the Dublin Central TD out of the picture, we can probably expect a lot more internal rows and possibly public spats. 

Donohoe’s nickname is “Prudent Paschal”, with many a minister over the years describing how they would go into a room with him before Budget Day only to be told that some of their wish lists were wildly over budget and they would have to cut their cloth.

The man holding the purse strings

Those in some of the most senior roles over the years have described how tightly  Donohoe held the purse strings and how difficult it was to get him to loosen them.

Former Minister for Housing Eoghan Murphy wrote about his own difficulties in this regard in his recent book.

While Donohoe might have been prudent to those within his own party, for financial think-tanks and economists, Donohoe wasn’t prudent enough. He was often criticised for the government’s ballooning spending and breach of the spending rules they had set for themselves. 

Those in Fianna Fáil who were asked about the change and what it might mean for the future of the country’s finances said Jack Chambers, the Minister for Public Expenditure, is just as cautious as Donohoe when it comes to the public finances.

Chambers will be looking to take the same approach as he had with Donohoe, it’s understood. 

The programme for government, which sets out aims to protect the economy while developing services and protecting jobs, is still key, said one Fianna Fáil source. 

The new man in finance is Tánaiste Simon Harris. From today, he takes over from Donohoe. 

Those in opposition state they are concerned that the Fine Gael leader is taking over the high-profile job.

Labour’s Ged Nash told the Dáil that the changing of the Minister for Finance is no small thing.  

“When the figure at the top of Finance changes then the dynamic of a government and the relationship between the Minister and the Department of public expenditure changes as well. That access is really important,” he said.

He went on to speak about the hospitality VAT cut down to 9%, something that Donohoe is understood to have not been a fan of.

“The Tánaiste’s fingerprints all over it,” said Nash. 

Well wishes

Those in opposition, despite coming from very different ideologies, wished Donohoe well in the Dáil today, but privately, they spoke about their concerns with Harris having to separate himself from being a party leader and steering the country’s finances.

They spoke about the heavy pressure placed on that office and raised concerns about Harris wanting to keep everyone happy, when that is not a possibility in that job. 

Donohoe was very experienced, said one opposition TD, who said sometimes he would take the advice of the civil servants and sometimes he would not.

They said said while Harris previously held the position of Minister of State in the Department of Finance, there is a worry that he might just take the word of the civil servants as gospel. 

One government source said Donohoe wasn’t afraid to say no, no matter who it annoyed.

Will Harris be able to do the same? 

Those in government state that Harris is more than experienced for the role, having held a number of high profile ministries in his time, while also being one of the longest serving ministers in Cabinet now. 

“This place used to be electric when there was a minister changeover, but it seems to be more run of the mill now,” said one TD. 

The mini-reshuffle did cause some excitement in Leinster House today, but didn’t appear to light up the place like it used to.

But the real state-of-play to watch out for next is if the removal of such a key cog in the last two coalition governments results in any cracks in the current coalition. That’s where the danger might lie.