Opposition deputies challenged the level of Cabinet unity on the implementation of the Hanly Report on the health services.
The Labour spokeswoman on health, Ms Liz McManus, claimed that the Minister for Defence, Mr Smith, had effectively torn up the report at a public meeting in Nenagh, Co Tipperary.
"Minister Smith stated that he refused to endorse the recommendations of the report and insisted he would not stand over any downgrading of Nenagh hospital. Where does this leave the Minister for Health (Mr Martin)?
"What does he have to say in response to this outright rejection of his view? Where does this leave his much-trumpeted programme of health reform?"
She challenged Mr Martin to say if he had the confidence of the Cabinet, "and whether or not Hanly has a future."
She added that the smoking ban, which was to be the Minister's tour de force, was sinking under a welter of confusion, meant the Minister's political future was being questioned.
"What credibility can he possibly have when he is here lecturing us about his plans for the future of the health service while his Government colleagues openly reject those same plans?"
Mr Martin had not replied to the debate when it was adjourned at 7 p.m.
Earlier, the Taoiseach agreed to demands from the Opposition party leaders that the debate be resumed at a time to be decided by the party whips. They, too, referred to Mr Smith's remarks.
Introducing the debate, Mr Martin said that because of the slant put on the report, it was not surprising that some people would have concerns about the future of their local hospital.
"If we believed every claim made in recent weeks, we would think that hospitals would no longer cater for patients safely and that a host of existing services would be taken away from local communities.
"This is completely untrue, so let us get the record straight. Unfortunately some sought to manipulate the report to suit their own ends.
"I call on every member of this House to concentrate on what the Hanly report actually says and on its real implications. Let's deal with facts, not fear.
"Let's look at what implementation of the report will mean for patients. And let's not forget that this report is all about finding the best way to deliver the best possible services to patients."
The Fine Gael spokeswoman on health, Ms Olivia Mitchell, warned that the acute bed shortage, fuelled by the Fujian 'flu epidemic, together with the inevitable re-emergence of the winter vomiting bug, would spell absolute disaster for Dublin's A&E departments and left no scope to deal with any unforeseen epidemics or major disasters.
"Add Hanly's recommendations to this cocktail without increasing the number of beds, and the net result is dangerous chaos."
