The Tanaiste believes asylum-seekers should have the right to work if their applications are not processed within six months, but she does not envisage this happening because "there are differences within the Government".

Ms Harney told the House it would have to be a Government decision and "short of a new mandate" it was unlikely to happen. "After all, there are four deputies in my party and I do not have a majority in the Government."

A review of immigration policy was under way and she would be making an input, while the public has until the end of July to make submissions.

Two years ago about 6,000 work permits were granted a year. The figure for this year so far is 15,000 with 1,300 work permit applications last week alone and there are currently 3,000 people in the State on working visas. "In comparison with many other European countries, we have a very progressive and liberal approach to both the working visa regime and work permits."

She was responding to the Fine Gael and Labour leaders, Mr Michael Noonan and Mr Ruairi Quinn, who raised the issue on the Order of Business.

Mr Noonan said the head of MediaLab Europe described the Government's immigration policy as unfriendly. Unless it changed it would cut off Ireland's growth at the knees.

Ms Harney, Minister for Enterprise, Trade and Employment, pointed out that in July 1999 the Government made a decision to allow asylum-seekers who at the time were in Ireland for a year, the right to work.

There were 2,500 asylum-seekers at the time and 81 per cent of them were working, with a further 10 per cent or 11 per cent involved in ongoing training. Last week alone the Department received 1,300 applications for work permits.