The Minister for Tourism, Sport and Recreation, Dr McDaid, last night suspended funding for the Irish Amateur Swimming Association, pending the outcome of an inquiry into its handling of the Derry O'Rourke sex abuse case.
The association must confront the issues facing it and put in place procedures which would "protect members of the organisation from sexual abuse", the Minister said.
The IASA said it fully supported the proposal to set up an independent inquiry and viewed "with the gravest concern the outcome of the recent Derry O'Rourke court case".
It also expressed its "deepest sympathies" to the victims and families who had suffered as a result of former coach O'Rourke's sex abuse of girl swimmers. He was jailed for 12 years last week.
"The IASA does not condone and will not tolerate any child abuse or any breach of the trust of parents or children who participate in our affiliated clubs," said a statement.
"The IASA has already adopted strict protection policies and procedures which will be further strengthened."
Last night Dr McDaid met the IASA president, vice-president, honorary treasurer and director of swimming.
In a statement the Minister said the IASA executives had agreed with his suggestion that an inquiry be carried out by "an independent chairperson with experience and a broad brief".
The chairperson and the inquiry's terms of reference would be agreed with representatives of O'Rourke's victims, and a steering group, including representatives of the victims, would oversee the inquiry.
All relevant papers would need to be made available, and the cost of the inquiry would be borne by the IASA.
Dr McDaid said: "I am particularly concerned that the association put arrangements in place for monitoring and implementing the code of ethics, for dealing with breaches of the code, for protecting members while alleged breaches are being investigated and for sanctions to ensure that breaches do not recur.
"These steps are essential to ensure the protection of young people and to restore confidence and credibility in the sport of swimming."
A former member of the swimming club where O'Rourke abused his victims said last night that the IASA's expression of sympathy to the victims and their relatives meant "nothing".
Ms Maire Cunningham, who was among the group of parents and former members of the swimming club who met Dr McDaid two days ago, said the IASA should be made accountable for its failure to act over allegations made about O'Rourke.
At the meeting Dr McDaid was told that documentary evidence existed which showed that the IASA was made aware of the allegations against the coach but did not act on them.
A meeting of the Leinster branch of the IASA will take place in Dublin this evening to discuss the fall-out from the O'Rourke case.
"I would hope that someone will be made accountable and that there is an investigation into this. We need some kind of structure in place to prevent this ever happening again," said Ms Cunningham.