Cabinet approval has been given to the Tanaiste and Minister for Enterprise and Employment, Ms Harney, to bring forward proposals for legislation on work permits which could be issued to asylum-seekers.
Equally, such permits could help reduce the problems which some companies are experiencing due to skill shortages by allowing people from eastern Europe and non-EU countries to work here.
The Irish Times has confirmed that anti-trafficking proposals being considered by the Minister for Justice, Mr O'Donoghue, and the work permits legislation being prepared by Ms Harney are part of a twin-track approach to the refugee issue taken by the Government at a meeting some weeks ago.
Currently, work permits operate on an administrative basis under the Aliens Act. They can be granted to nationals outside the European economic area. The new proposals would put work permits on a statutory footing.
These developments would suggest that the Government believes that the growing demand for asylum-seekers to be allowed to work while they are seeking a decision on their applications should be dealt with in a broader context than the refugee problem.
Ryanair recently sought work permits for pilots from the former Yugoslavia to be recruited by the airline because of the shortage of qualified pilots in the US, Canada and the EU.
Under the proposals being considered by Ms Harney, the employer - rather than the employee - would apply for, and receive, the permit to work.
The Government has come under sustained pressure in the last six months to allow the increasing number of asylum-seekers to work in the State while their applications are being processed.
A campaign to this effect was launched by the Asylum Rights Alliance last July. It comprised more than 100 organisations, including the Irish Congress of Trade Unions, the National Organisation of the Unemployed, Trocaire and refugee, human rights and development organisations.
The alliance was supported by a public statement from a former Taoiseach, Dr Garret FitzGerald, who described the Government's policy of no work or study for asylum-seekers as "ill-conceived".
The call for asylum-seekers to be permitted to work pending a decision on their status led to a rift in Government when the Minister of State for Foreign Affairs, Ms Liz O'Donnell, supported the campaign.
Rejecting the call on the same day, the Minister for Justice, Mr O'Donoghue, said the State already attracted a disproportionate number of asylum-seekers because of what he called the generous regime applied to them.
"Giving a right to work would simply create another `pull' factor which would put further pressure on the asylum-processing system and continue to delay recognition for genuine refugees in need of protection," Mr O'Donoghue said.
The Labour spokesman on justice, Dr Pat Upton, welcomed the indication this week by the Minister for Justice that he would consider allowing refugees awaiting decisions on their asylum applications the right to work. His spokesman was responding to a call to review the existing embargo from the general secretary of the ICTU, Mr Peter Cassells.
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