Taoiseach Enda Kenny is stepping up his preparations for the next General Election with staff taking up positions from today to work solely on the campaign. Fine Gael will begin selecting candidates in the New Year, with the party considering whether to 'encourage' some sitting TDs not to run.

In the wake of the water charges debacle, Fine Gael is trying to get the agenda back on to jobs and economy, with the Coalition having a maximum of 15 months left in office.

But there are lingering concerns about how Mr Kenny will come out of the report into the systematic taping of phone calls in and out of garda stations.

The Fennelly Commission, which is also examining the circumstances behind the resignation of former Garda Commissioner Martin Callinan, including Mr Kenny's role, will be providing a preliminary report in the early part of 2015.

Fine Gael's low support rating on foot of a series of scandals this year has started speculation that the Government will not survive its full term.

This morning, senior staff will begin taking up positions to work solely on campaign strategy, rather than day-to-day operations.

A number of staff will be moving over the coming months from Leinster House to a special campaign office at Fine Gael headquarters.

Senior figures in the party, right up to Finance Minister Michael Noonan, are annoyed the Coalition has got no bounce from the tax cuts and social welfare increases in last month's Budget because of the water charges debacle.

Party strategists believe the onset of the tax cuts in the New Year will help their cause, especially with couples on average wages seeing over €100 a month extra in their pay packets.

"It will help to keep things in perspective. By the time the water bills appear in April, people will have had three months of lower income tax," a senior Government source said.

After being on the back foot continually over the year, Fine Gael's strategy will be to get the focus on to the economy.

"Watch the New Year carefully. We are going to be talking about tax plans. It's a pro jobs agenda. The more vibrant the economy, the more jobs you are creating," another senior Fine Gael source said.

But Mr Kenny badly needs a lift in support to quell the doubts on the backbenches about the direction of the country and his leadership.

"People may not connect us with economic recovery if they just see incompetence. If we got to 20pc in a poll, then that would be crisis point. And if there is even a whiff of the Taoiseach being involved in the Callinan resignation, then there's trouble. All the old suspicions have come back about him - the pre-heave suspicions," a party TD said.

"Everyone feels guilty after the Shatter issue for it staying up there and nobody standing up. That won't happen again."

Retired Supreme Court Judge Nial Fennelly has sought an extension to carry out his report into the garda taping affair, including Mr Callinan stepping down in March, just hours after being visited at his home by the then secretary general of the Department of Justice Brian Purcell.

A preliminary report into the circumstances behind the resignation of former Garda Commissioner Mr Callinan will be provided to the Taoiseach in the early part of 2015.

Ministers and party officials alike admit people are "concerned" about the outcome of the Commission and what it will say, if anything, about Mr Kenny.

Even a mention of Mr Kenny acting inappropriately is regarded as having enormous repercussions for the Taoiseach.

However, Mr Noonan's continued support of Mr Kenny is viewed as crucial.

"People are pissed off with Kenny. But Noonan is of the same view as Kenny that it will all improve when people see the tax cuts hitting," a minister said.

Mr Kenny has appointed a number of senior ministers to General Election campaign positions, with Justice Minister Frances Fitzgerald in charge of overall strategy.

Health Minister Leo Varadkar is tasked with communications, Agriculture Minister Simon Coveney has got policy and Children's Minister Dr James Reilly is looking at the party organisation.

Ms Fitzgerald will have to take the tough calls around selection of candidates.

The party is expected to sort out cases where there are vacancies early next year with selection conventions proceeding through the year.

Fine Gael will have to dramatically increase the number of female candidates.

Irish Independent