The Government is expected to shelve plans for a new Oireachtas committee that was to be chaired by the maverick Fianna Fáil backbencher, Mr Ned O'Keeffe, after Labour refused to serve on it.
The Labour Party whip, Mr Emmet Stagg, told a meeting of party whips on Tuesday that it would not co-operate with the committee in protest against the lack of resources given to existing committees. The other Opposition parties said they have not yet decided their attitude.
Government sources said yesterday that the Coalition was now highly unlikely to proceed with the new committee. At a whips' meeting in Leinster House on Tuesday night the Progressive Democrats whip, Ms Liz O'Donnell, also questioned the need for the new committee, which was to cover competition policy - an area covered by the Tánaiste, Ms Harney, in her Department of Enterprise and Employment.
However, a party spokesman said yesterday that the PDs had no objection to it at this stage, but had asked to see the proposed terms of reference.
Mr Stagg said yesterday it was unacceptable that at existing committees "you have the full resources of the State backing a Minister against Opposition spokespersons who have no back-up in terms of research".
He said EU legislation was going through the Oireachtas committee scrutinising it "on the nod" because the Opposition did not have the resources to study it.
Fianna Fáil is believed to have favoured Mr O'Keeffe to chair the proposed new committee, partly because of a belief in the party that he deserved some consolation after his resignation as minister of State at the Department of Agriculture in February 2001. He quit his post after he failed to declare his family farm's interest in a bone meal licence before a relevant Dáil vote.
However, the decision to propose him as the new committee chair - earning some €15,000 extra salary per year - was also seen as related to a desire in Fianna Fáil to curb his vocal criticisms of the Government.
He has criticised the Government regularly on its agriculture policy and did so again yesterday following the agriculture deal struck by EU farm ministers in Luxembourg. He also alleged in recent months that the Fianna Fáil-PD Coalition was "the most right-wing government" since the 1920s.