THE Dail agreed to amend the Employment Equality Bill to permit protection of the "religious ethos" of institutions.

Under an amendment introduced by the Minister for Equality and Law Reform, Mr Taylor, religious, educational and medical institutions established for religious purposes with the object of providing services "in an environment which promotes certain religious values" will be permitted to give favourable treatment to employees on religious grounds. This treatment must be necessary "to maintain the religious ethos of the institution".

Action to prevent an employee undermining the religious ethos of the institution will also be allowed.

Mr Taylor said the amendment had been drafted after widespread consultations and attempted to strike a balance in regard to the rights of religious denominations. In the event of a promotion in a school, for instance, it would be necessary to show that giving it to a person of a particular persuasion was necessary to maintain the school's religious ethos.

The Fianna Fail spokesman on equality and law reform Dr Jim McDaid, said it would be very arrogant to dismiss "the contribution made to our institutions by religious bodies. Maintaining individual freedom did not mean "that we must willy nilly have our own way in everything regardless of the effect it has on our society as a whole. It does not mean when we talks of reform that we should "throw out the baby with the bathwater."

Ms Helen Keogh (PD, Dun Laoghaire) said it was reasonable to expect that religious ethos be maintained. "I have a great deal of sympathy with the Minister. You would want the wisdom of Solomon to be correct on this one.

Mr Pat Gallagher (Lab, [Offaly) said the amendment would enhance the effectiveness of the Bill. He deplored Democratic Left's threat at committee stage "to go solo" and put down its own amendment if the Minister did not come up with an amendment. He asked the Minister to respond to the reservations about the Bill by the Irish National Teachers' Organisation.

Ms Kathleen Lynch (DL, "Cork North Central) said the amendment was not perfect but she accepted a balance had to be struck. The amendment would limit the scope off discrimination specifically to protecting religious ethos. Democratic Left found that opposition to the original Bill did not function, "and we had to be the opposition".

The House also adopted an amendment to the section, banning discrimination on the grounds of "sexual orientation". It defined sexual orientation as "heterosexual, homosexual or bisexual".

A Fianna Fail amendment to exclude paedophilia from the definition of sexual orientation was pressed to a division. The Minister said it was unnecessary and would cause confusion. Paedophilia was a criminal offence and did not enjoy any legislative a protection.

The amendment was defeated by 71 votes to 54. THE opening shots in the general election campaign were fired in the Seanad yesterday.

Two members vying for Dail seats in Laois Offaly exchanged fire over the fate of the proposed peat powered electricity generating station planned for the midlands. Mr Tom Enright (FG), who is bidding to return to the Lower House, called for an early debate, in the wake of the European Commission decision to suspend payment of a £21 million grant for the station "in north Offaly"

There was considerable concern at the Commission's decision, he said.

Mr John Dardis (PD) interjected to ask: "Whose fault was it?"

Mr Enright: "I put it to you straight. You were against the project from the beginning." He wished to put it on the record that the Government was in the process of advertising for tenders for the project.

Ms Cathy Honan, who hopes to take a seat for the Progressive Democrats in the key five seater, urged that the Minister for Energy, Mr Alan Dukes, come into the House and clarify as a matter of urgency the future of the proposed plant, which he had earlier claimed had the potential to provide 500 jobs. Reports that the Euro grant had been put on hold were very worrying Could the Minister confirm whether or not the plant would be built?

She wanted to remind Mr Enright that when her party had been in government and Mr Molloy was Minister for Energy, he commissioned the feasibility study of the project. "I have no doubt if he was still in Government it would be built."

An angry Mr Enright claimed that the PDs had "hassled" a previous minister, Brian Cowen, and had described the project as pie in the sky". They were now doing a somersault by expressing concerns about a withdrawal of funds.

Mr Paschal Mooney (FF) remarked: "The election has started, in Laois Offaly."

The Leader of the House, Mr Maurice Manning, confessed that he did not have up to date information on the matter. His party colleague, Mr Enright, was like an old warhorse pawing the ground, ready for the "off", and Ms Honan was not far behind.

But there might be plenty of time - up to six or eight months - to resolve the issue, he ventured. In the meantime, he would invite Mr Dukes to discuss the matters with senators.