Lack of funding was behind the decision by the Minister for Foreign Affairs, Mr Cowen, not to establish an independent agency for the Irish abroad.
The establishment of a stand-alone agency "to co-ordinate the provision of services for Irish emigrants and Irish communities abroad" was one of the key recommendations of the report of the task force on policy regarding emigrants.
This agency should be "under the aegis of the Department of Foreign Affairs", the task force said in its 2002 report, which was accepted at the time by Mr Cowen.
On Thursday, however, Mr Cowen announced the establishment of a unit within the Department, which he said would work to implement the recommendations of the task force report.
A spokesman for the Department said the establishment of an independent agency was "not opposed" by Mr Cowen, "but it was decided a dedicated unit was the most cost-effective way to go."
It was a positive development that for the first time in the history of the State there would be a unit dedicated to the provision of funding for groups working with vulnerable Irish emigrants.
Though the task force called for "a significant increase in the level of official funding for emigrant services" to €18 million last year and €34 million next year, the grants announced on Thursday total €3.26 million - an increase of €1 million on last year.
Asked why funding was not meeting the aspirations of the task force, the spokesman said Mr Cowen had secured large increases from the Department of Finance for the Díon Fund through which grants are filtered.
Pressed on whether the Department of Finance had refused to sanction funds to the tune of €18 million, he said again "The Minister has secured huge increases in funding".
Groups working with Irish immigrants in Britain broadly welcomed, albeit cautiously, the establishment of the unit.
Ms Breege McDaid, Manager of Irish Community Care Merseyside (ICMM), in Liverpool, expressed some concern that a unit working within the Department might not be as responsive as an independent agency, but added "it will be measured on what it delivers". ICCM works with up to 300 Irish immigrants, of all ages, per year.
Welcoming the funding increase ICCM will get, she said, however, the £72,000 it receives from Díon was "a drop in the ocean".
Mr Danny Maher, Director of Cricklewood Homeless Concern (CHC), London, also welcomed the increase the charity will get. CHC will get £64,000 in the coming year compared with £50,000 last year.
Fr Alan Hilliard, director of the Irish Bishops Commission for Emigrants, welcomed the establishment of a dedicated emigrants' unit and increased funding as the "beginning" of necessary, formalised and structured support from the Irish Government. There was "no time now" to argue about the semantics of whether an agency would be better than a unit.
He said the bishops would be watching the work of the unit closely. "There must be a difference on the ground within the next calendar year," he said.
