TAOISEACH BRIAN Cowen's appeal for "time and space" to find a solution to the medical card controversy has helped to quell a growing rebellion among Fianna Fáil backbenchers.
Mr Cowen yesterday said the budget proposal to end universal provision of medical cards to over-70s would not proceed in its current form, which he said did not have "wider public acceptance".
In an indication of the seriousness of the crisis facing the Government, the Taoiseach also postponed the departure for his week-long trip to China for two days, from last night until Tuesday.
The delay will allow Mr Cowen to steer Government negotiations with the Irish Medical Organisation on the issue of the fees charged to the State for medical cards issued on grounds of age.
It will also afford him the chance to attend a Fianna Fáil parliamentary party on Tuesday to address personally the concerns of backbenchers, before his rescheduled departure for China.
A number of backbench TDs, including the most prominent rebels over the proposal, yesterday said they were reassured by the Taoiseach's comments, and they would be willing to allow him the time he has requested.
However, all said the scale of opposition and hostility to the proposal had been unprecedented, and many called for the income threshold to be increased significantly.
"There has been immense damage done. I hope that in time the public will be able to forgive Fianna Fáil for this fiasco," said Noel O'Flynn, one of the TDs who threatened to vote against the measure.
Another vocal opponent, Mattie McGrath, said the Government needed to put its hands up and say it was wrong.
Last night the Government confirmed it has made formal contact with the IMO. It is believed that the initial contact was "positive".
In the course of a second major interview of the weekend on the issue, Mr Cowen said an alternative solution needed to be found, but that it had to be achieved within the "budgetary parameters".
He also said there was a two-month period up to January 1st to arrive at a "creative solution".
He said maintaining universal access to medical cards was not sustainable, and signalled that the Government would instead examine a further widening in eligibility thresholds. However, he said there would be a means test for over-70s.
Separately, in what was being interpreted as another significant concession, Minister for Finance Brian Lenihan has indicated the Government is prepared to review aspects of the controversial 1 per cent levy introduced in the budget.
In an interview last night, he signalled there could be movement "around the edges" on how and at what income levels the levy is applied.
It looked likely last night that Independent TD Finian McGrath will this week withdraw his support from the Government and terminate his deal with the Fianna-Fáil-led coalition. He said he had not been reassured by the Taoiseach's interview. "It leaves me in a difficult position. It is looking like I am on the way out."
Two other independent TDs who support the Government, Michael Lowry and Jackie Healy-Rae, last night said they had yet to decide how they would vote on the issue.
Fine Gael leader Enda Kenny said the Taoiseach was unwilling to admit the Government had got it wrong.
