Plans by the PDs to contest the European election in June are looking increasingly threadbare after the Minister for Justice, Mr McDowell, suggested on radio that prospective candidates should contact the party to put their names forward.
In the same interview, Mr McDowell distanced himself from a motion from his own constituency organisation which called on the IRA to pay reparations or a "peace dividend" to the State.
He described the motion as "symbolic" and said prospects of the IRA giving money to the Irish people were "zilch".
Renewing his attack on the paramilitary organisation, he said claims by the Sinn Féin president, Mr Gerry Adams, that he was never a member of the IRA left him in despair. "That language had ceased to have meaning," he said.
Senior figures in the PDs have been reassessing their strategy since last week when the former minister of state Ms Liz O'Donnell decided against standing for election in the Dublin constituency.
Ms O'Donnell was seen as a favourite to take a seat and no other obvious candidate has yet emerged.
At the beginning of the party's annual conference in Killarney yesterday, party officials insisted that its strategists were still talking to potential candidates. But while Mr McDowell said on RTÉ's News at One that a number of party members where certainly prepared to put their names forward, he said any candidate must have a realistic prospect of election.
Mr McDowell said the PDs would not run a token candidate and invited individuals who might fit the profile to phone the party. The remarks are seen as the clearest indication yet that the PDs will not contest the election if they fail to come up with a strong candidate.
"The focus will have to be on selecting a winning candidate," said the party's spokesman. "We're not going to be running a candidate to save face."
Separately, one informed figure suggested in private yesterday that two individuals were in the frame.
The source said there was uncertainty as to whether either could secure a European Parliament seat for the party.
The party has stated publicly that it wants to contest the election in Dublin and in the East constituency, formerly Leinster, where it has not yet selected a candidate.