Talks aimed at forming a new Government are set to resume tomorrow - over a month after polling day.

It has been reported today that Fine Gael is now considering abandoning its pledge to scrap the USC - but only if Fianna Fáil backs off its own plan to scrap water charges.

A senior member of Fianna Fáil refused to be drawn on the suggestion , however.

Eamon O'Cuiv instead re-iterated his party's difference from Fine Gael.

"I'm not getting into negotiations here this morning, and I'm not on the negotiating team," he said.

"What I'm saying to you is - Fianna Fáil have a totally different approach to the progress of this nation from Fine Gael, and just as people understand that the AAA are very different from Fianna Fáil in their approach, we have fundamentally different approaches [than Fine Gael]."