Fianna Fail has suggested it may be willing to conclude a government deal with Fine Gael, without any agreement on Irish Water.

But the cost would be that the issue would then be decided by the Dáil - which would almost certainly vote to abolish the utility and end charges for years, if not permanently.

Government talks between Fine Gael and Fianna Fáil have resumed in Trinity College this evening, with both parties saying the negotiations are at 'a crucial stage'.

Fianna Fáil's Michael McGrath says it's better to have a deal that includes water - as a deal without water would lead to regular gridlock as opposition parties lined up to table water-related motions almost every week.

However, he added that it was 'no longer tenable' for the Dáil to be denied a role in guiding water policy - and that without a deal on water tonight, FF would tomorrow vote to schedule a water debate anyway. 

He also said that if no further deal was available, Fianna Fáíl would still consider allowing Fine Gael and independents to form a government anyway - but the Dáíl would then get to decide water policy.

This would then likely see Fianna Fáil and its 43 TDs revert to its pre-election policy of seeking the abolition of Irish Water and the suspension of charges for at least five years.

Another 39 TDs (including four opposition parties and three independent TDs) have signed a separate motion seeking the total abolition of charges as well.

This indicates that there is a clear parliamentary majority opposed to charging or the existence of Irish Water - putting the much-loathed utility on a path towards abolition unless a FG-FF deal is agreed first.