The Government has rejected demands by Fianna Fáil backbenchers to soften reform proposals, including the break-up of Aer Rianta and the partial privatisation of Dublin Bus routes.
During a four-hour meeting, Fianna Fáil backbenchers criticised over-regulation, the remoteness of some Ministers, the Progressive Democrats and the drift in the Government's policies.
The Taoiseach, Mr Ahern, offered to meet his backbenchers individually over the coming months to discuss their criticisms of the Government's performance, which included the Minister for Finance, Mr McCreevy's tight spending rein.
Facing Opposition attack in the Dáil, Mr Ahern, however, had earlier insisted that the FF/PD Programme for Government would be implemented during the remainder of the lifetime of the Dáil.
"If we look for reform, but give up as soon as someone says he or she does not like that reform, then the country would not be where it is today. We are a modern country. We are trying to make the regions modern and, yes, there are difficulties. However, there will be no knee-jerk reaction that we will not do anything.
"If we do that we will never solve health service problems, we will never advance third-level education and we will not continue to modernise the country. That is not what I want."
He remained committed to moving 10,000 civil and public servants voluntarily out of Dublin to provincial offices by late 2006/early 2007 despite the difficulties caused by the issue in Dublin.
"We have to negotiate on these matters, and we will do so. Over a short period of time we will deal with these issues. We have set out the process and we will endeavour to do so," he told Labour leader Mr Pat Rabbitte.
The Taoiseach's leadership was not criticised during last night's parliamentary party meeting, though the performance of a number of Fianna Fáil Ministers was implicitly questioned. The ministerial trio included Mr McCreevy, the Minister for Health, Mr Martin, and, to a lesser extent, the Minister for Education, Mr Dempsey.
The Ministers were in the room, but no member of the Cabinet spoke other than the Taoiseach, who addressed the meeting for 30 minutes at the beginning, and wrapped up proceedings at the end.
"He made it clear that he wanted everyone to say their piece, to put out their criticism of him, the Government or anybody else," said one TD following the meeting.
Given the vocal criticism of the last few days, the tone of the meeting surprised some of the attendance, who had expected bitter recriminations. "It wasn't like that," said one.
The Government Chief Whip, Ms Mary Hanafin, said the direction of the party would be discussed over the next few weeks, and two special gatherings would be held in September to map out the way ahead.
Clearly irritated by the earlier criticisms from FF backbenchers, PD senator Mr John Minihan said he had watched with interest "the usual FF suspects racing to the plinth at Leinster House to attack the PDs. These people think that they can blame their disastrous election on the PDs they are in worse trouble than they realise," said the Cork South Central politician.
However, decentralisation was blamed by some who attended the PDs' parliamentary party meeting for its poor Dublin performance.
Speaking to The Irish Times, one of those who attended said: "I think there is a recognition that a whole new look will have to be put upon it. It is certainly going to be looked at in Cabinet."
The Minister for Communications, Mr Dermot Ahern, rejected backbencher criticisms that Fianna Fáil has drifted to the right. FF deputies Mr Conor Lenihan, Mr John Cregan, Mr Batt O'Keeffe and Mr Michael Mulcahy levelled the charges publicly as they arrived in the Dáil ahead of last night's meeting.
However, the Minister also rejected the criticisms by the Progressive Democrats leader, Ms Harney, who complained about the slow pace of delivery of Government reforms.
