THE TAOISEACH has offered to compromise in the row over medical cards for people over 70 in an effort to quell an open revolt by a number of his own backbench TDs that threatens the stability of the Government.
Mr Cowen last night offered to engage in talks with the medical profession to establish if the Government's scheme could be modified.
"We will set up a process over the coming weeks to have an engagement to see how we restructure the scheme to get a more favourable outcome whilst at the same time getting the savings the Government has set out to do," he said on the RTÉ 9pm television news.
Mr Cowen was adamant, however, that the principle of automatic entitlement of all people over 70 to a medical card would have to go. "There will not be an automatic entitlement regardless of means," he said. "The idea that we can have a sustainable scheme for automatic entitlement, irregardless of income, any income, is not sustainable into the future."
Asked if he was backing down in the face of pressure, Mr Cowen said: "It's simply a pragmatic response to meet legitimate public concerns. I knew there was going to be problems with this. I am not going to argue with people. If savings can be found by finding a different solution where more people can get into the scheme by changing the fee structure, then why wouldn't we do that?"
A spokesman for the Irish Medical Organisation declined to comment on Mr Cowen's television interview.
Fine Gael leader Enda Kenny accused the Taoiseach of creating even more confusion for the elderly in the interview.
"I'm astounded by this intervention by the Taoiseach," said Mr Kenny, who again called for the decision to be reversed. "The Taoiseach refused to reverse the decision but bizarrely outlined no credible plan of action to deal with this fiasco."
The Government was rocked during the day by the resignation of one Fianna Fáil TD and the calls by a number of others for the Budget decision to be reversed. Green Party and Independent TDs who back the Government also called for a climbdown.
Wicklow TD Joe Behan stunned his colleagues by writing a letter to the Taoiseach resigning from Fianna Fáil in protest at the Budget decision.
"I think that people like Éamon de Valera, Seán Lemass and others will be turning in their graves with the decisions that have emanated from this Government in this particular week," said Mr Behan.
A string of other Fianna Fail TDs criticised the budget decision. Cork TD Noel O'Flynn said he would vote against it in the Social Welfare Bill, while a number of others, including former minister Jim McDaid, former chief whip Tom Kitt and Tipperary South TD Mattie McGrath came out publicly against it.
Two of the Independents who back the Government, Michael Lowry and Finian McGrath, met Minister for Health Mary Harney to try and persuade her to find the Budget savings through other measures.
"This is socially unfair, morally wrong and political madness," said Mr Lowry. The Greens then joined the fray and called for the decision to be revisited.
Fine Gael has increased the pressure by tabling a Dáil motion for next week calling for a reversal of the medical card policy. "The Fianna Fáil and Independent deputies who have claimed they are concerned about this move will now have the opportunity to vote with their feet," Mr Kenny said.
The Taoiseach is scheduled to leave tomorrow evening on a week-long trade mission to China.