The Labour Party spokesman on social, community and family affairs said yesterday the ESRI's poverty statistics were a "shocking indictment" of the Government.
Mr Tommy Broughan said: "It is simply a national scandal that, at a time of unprecedented economic growth, the number of people surviving on incomes below half the national average should actually be increasing.
"However, these figures will be no surprise to anyone who has analysed the four budgets introduced by the current Government, each of which ensured that the relatively well off benefited disproportionately over those on low and middle incomes.
"The ideological engine of this Government is driven by Ministers McCreevy and Harney and they have shamelessly promoted the interests of the better off. This has been reflected in the obsession with reducing the upper rate of tax, rather than widening the bands and increasing tax credits - which would benefit all taxpayers.
"There is one final opportunity for this Government to redeem itself in the forthcoming December Budget. All tax changes in the Budget must be directed towards those on low and middle incomes."