Fianna Fáil Molloy was first elected to
Dáil Éireann as a Fianna Fáil
TD for the
Galway West constituency at the
1965 general election. In 1968, he was also elected
Mayor of Galway. The following year he was appointed as Parliamentary Secretary to the Minister for Education. Molloy's early political career was marked by his loyalty to Fianna Fáil's leadership under
Taoiseach Jack Lynch. He quickly rose through the ranks and was appointed Minister for Local Government in 1970, a position he held until 1973. His tenure as Minister for Local Government was characterised by his efforts to modernise and streamline local government structures in Ireland. Molloy's tenure in Fianna Fáil saw him as a stalwart of the party's establishment, though tensions with its leadership grew over the years, particularly with
Charlie Haughey. In opposition from 1973, Molloy served as the frontbench spokesman, where he became involved in a high-profile dispute with
Jim Tully, the Labour Minister for Local Government, over the controversial redrawing of constituencies, known as the "Tullymander". Molloy, along with fellow Fianna Fáil member
Brendan Crinion, used Dáil privilege to accuse Tully of having an improper commercial relationship with a builder in County Meath. The accusation was strongly denied by Tully and Molloy and Crinion later withdrew the charge. Despite this, Molloy faced severe repercussions, being forced to resign from his frontbench position. He was subsequently condemned by a judicial tribunal and censured by the Dáil for abusing parliamentary privilege. When Fianna Fáil returned to office in 1977, he became Minister for Defence in the final government of
Jack Lynch. Molloy supported
George Colley in the
1979 Fianna Fáil leadership election.
Charles Haughey won the contest and dropped Molloy, alongside other opponents, from the cabinet. Thereafter Molloy became a member of the
Gang of 22 who opposed Haughey's leadership of the party.
Progressive Democrats In 1986 Molloy resigned from Fianna Fáil and joined the newly formed Progressive Democrats, spearheaded by Haughey's arch-rival
Desmond O'Malley. Molloy's move was seen as a major break from the political establishment, as the PDs advocated for low-tax, market-oriented economic policies and a more liberal economic agenda. Molloy's decision was driven by his dissatisfaction with the direction of Fianna Fáil under Haughey's leadership and his belief that the party had become increasingly alienating. In 1989, Molloy contested the European Parliament elections but was unsuccessful in his attempt. Following the
1989 general election Molloy, along with newly elected MEP for Munster
Pat Cox, represented the Progressive Democrats in the lengthy negotiations with Fianna Fáil to form a coalition government. Once the negotiations concluded, Molloy was reinstated in the Cabinet as Minister for Energy under Taoiseach Charles Haughey, who had previously caused Molloy's political humiliation a decade earlier. Over the following three years, Molloy and his Progressive Democrat colleague Desmond O'Malley had a working relationship with their former Fianna Fáil colleagues, though tensions grew due to resentment over their presence in the Cabinet. The issue came to a head when Molloy and O'Malley made it clear they would not serve in a Cabinet that included
Brian Lenihan Snr, following his controversial remarks during the
1990 Irish presidential election about alleged phone calls to President
Patrick Hillery from 1982. ==Political views==