The Irish Farmers' Association is to pursue the Fianna Fail TD, Mr John Ellis, to fulfil his commitment to compensate creditors of his failed meat business, Stanlow Trading Ltd.
While the Sligo-Leitrim TD had indicated he was prepared to dispose of some assets to meet the debts, he has not met the IFA since December. The last contact between the two sides was a telephone conversation early last month. An IFA source said "the discussions appear to have come to a dead end with Mr Ellis".
Some 80 farmers in the north-west are owed about £300,000 from the collapse of the company in 1986. Mr Ellis, along with his brothers Caillian and Richard, were the directors of the company.
While the courts established they were not personally liable for the debts, Mr Ellis has accepted he has a "moral responsibility" to the farmers who are owned amounts ranging from £200 to £21,000.
A spokesman for the IFA last night said the organisation still "believed that given Deputy Ellis has expressed his `moral responsibility', and if he is genuine about that, then he would be prepared to make a financial gesture to the farmers involved".
The IFA is insisting that Mr Ellis fulfil his commitment to have his accounts verified by an independent auditor.
The IFA also wrote to Mr Ellis' brother Richard, who is based in the Isle of Man, early last month. While he has not yet replied to that correspondence, it is understood he accepts no liability for the outstanding debts.
Mr Ellis' office said the TD would not be available to comment this week.