Minister of State for Community, Rural and Gaeltacht Affairs Noel Ahern has ruled out using dormant accounts to help Irish communities living abroad.
Mr Ahern insisted that the Government was fully committed to providing support for these communities, adding that it had been clearly demonstrated by the allocation of significant funding directly from the Exchequer.
"In 2005 alone, more than €8.25 million was allocated for such services and this figure will increase by 45 per cent in 2006 to more than €12 million."
He said disbursements from dormant accounts were designed to assist three broad categories of people: those who were economically or socially disadvantaged, those educationally disadvantaged and the disabled.
Labour spokesman Brian O'Shea said the Minister should amend the Dormant Accounts Act 2001 to allow emigrant organisations to seek funding from them.
He said the Government had no problem introducing legislation converting the dormant accounts fund "into a slush fund to aid it in the run-up to the next general election".
Mr O'Shea said a significant amount lodged to the dormant accounts fund came from bank accounts belonging to emigrants in England, in particular.
"They lodged money in Irish banks with the intention of returning to Ireland and using it, but that never happened."
He added that the taskforce on emigrant services had recommended the provision of €34 million for emigrant services by last year.
This year the €12 million provided would represent one-third of the recommended allocation.
Mr Ahern said he did not agree that the money collected from the dormant accounts of emigrants should be used for emigrant services. "That is not the direction the Government is taking."
Reiterating that significant funding was being invested in emigrant services, Mr Ahern acknowledged Mr O'Shea's comments on the taskforce recommendation, but funding this year had increased by 45 per cent, which was huge by any standard.
"Given that the funding is on such a curve, additional funding will be provided in the coming years. This year's budget is 12 times what it was seven or eight years ago."
Mr O'Shea said that he could not fathom the Minister of State's logic. "There is an inequity in the situation. Many of our people in Britain, in particular older people, are in need and the services for them require additional funding.
"We should remember these people because they did not go to Britain because they wanted to but because Ireland could not provide them with a living."