The Blueshirts were formed by O Duffy,there is no connection between Collins and the Blueshirts.
FINE GAEL was founded in 1933.
it was a conglomeration of parties one of which was the Blueshirts.
n response to the banning of the National Guard, Cumann na nGaedheal and the National Centre Party merged to form a new party, Fine Gael, on September 3, 1933. O'Duffy became its first president, with W. T. Cosgrave and James Dillon acting as vice-presidents. The National Guard changed into the Young Ireland Association, and became part of a youth wing of the party. The party's aim was to create a corporatist United Ireland within the British Commonwealth. Following disagreements with his Fine Gael colleagues, O'Duffy left the party, although most of the Blueshirts stayed in Fine Gael.

O'Duffy then founded the National Corporate Party, and later fought on General Francisco Franco's side in the Spanish Civil War. They were once fired upon by mistake by Franco's troops, after which they returned to Ireland. In December 1934, O'Duffy attended the Montreux Fascist conference in Switzerland.
Fine Gael was never a fascist party,They are not much different from Fianna Fail.