LAST UPDATE | 15 Jan 2025

IT IS UNDERSTOOD that Fine Gael leader Simon Harris will take a beefed-up role as Foreign Affairs Minister within the next government.

A draft programme for government will be published later today, following meetings of the Fianna Fáil and Fine Gael parliamentary party.

Negotiating teams hope to have the details ironed out this week to enable Fianna Fáil leader Micheál Martin to be voted in as Taoiseach on 22 January, when the Dáil sits again.

Meanwhile, incoming Tánaiste Simon Harris is expected to take a beefed-up role as Foreign Affairs Minister, with trade being added on.

Harris had recently called for an “Irish diplomatic and trade offensive” due to Donald Trump’s return to the White House. 

The next government will also include a Healy-Rae, with Michael Healy-Rae this morning confirming that he will be a minister of state.

It is understood this will be within the Department of Agriculture.

On housing, it is understood that Fine Gael’s commitment to increase the Help to Buy payment from €30,000 to €40,000 for first time buyers has not made it over the line.

According to sources, the scheme will remain as it currently is due to concerns over “market implications”. A commitment will instead be made to review or revise the scheme.

The First Home Scheme (which sees the government take an equity stake in a buyer’s home) is to be extended to second hand properties.

It’s also understood that the energy VAT will remain at 9% under the new programme for government, as well as a big push on furthering wind energy.

Elsewhere, it’s expected that there will be new Junior Ministerial positions for older people and aging.

There are also targets within the document to secure balanced regional development as well as a new infrastructure unit within the Department of Public Expenditure DEPR to accelerate capital projects.

Also included is a pledge to invest an extra €30 billion in capital funding, to bring it to €95 billion over next five years.

Plans are also included to ensure equitable access to abortion services.

Meanwhile, the VAT rate for the food-led hospitality sector, entertainment and hairdressing is set to be cut to 9% as part of a new Programme for Government.

The current VAT rate for these sectors is 13.5% and the food-led hospitality sector in particular has long called for this to be cut to 9%.

VAT for these sectors was reduced to 9% during the Covid-19 pandemic, at a cost of €1.2bn to the exchequer.

It returned to 13.5% in August 2023.

However, it’s now understood that it will once again be cut to 9% from the next Budget.

Adrian Cummins, Chief Executive of the Restaurants Association of Ireland and Independent candidate on the Industrial and Commercial panel for Seanad election, described the VAT cut as a “bright day for the future of Irish hospitality”.

He said the proposed reinstatement of the 9% VAT rate is “greatly welcome”.

“This marks a significant victory for small, independent restaurants, pubs, cafés and other hospitality businesses which, in total, employ 270,000 nationwide,” said Cummins.

He added that his “thoughts are also with those business owners that were forced to make the heartbreaking decision to close due to rising, uncontrollable costs in recent times”.

Cummins said it is now “critical” that the next government “takes every step to prevent further closures of SMEs in the hospitality sector”, which he described as the “heart and soul of every town, village and city across the country”, between now and October’s Budget.

“This includes instructing the Revenue Commissioners to exercise necessary, meaningful leniency on warehoused or current tax liabilities,” said Cummins.

Fianna Fáil is to hold a special Ard Fheis in Dublin on Sunday to ratify the new programme for government.

Micheál Martin will present the document to voting members and formally propose the draft for approval. Members will have an opportunity to contribute to a debate and, following the debate, polling will open.

Voting will conclude at 5pm on Sunday. 

And as reported by The Journal last week, the parties have been working towards having a final document ready for this week, ahead of the Dáil resuming on 22 January.

Fine Gael is also due to hold four regional events so members can ratify the programme, however the party has yet to specify the locations. 

-With additional reporting from Christina Finn and Jane Matthews