The Minister for Defence insisted that the Government was working effectively on its five-year programme as he came under pressure on the tensions between Fianna Fáil and the PDs.
Mr Smith said, however, that the two parties were separate, with distinct policies and mandates.
"It is natural that we have different outlooks from time to time. We do not attempt to deny that we have differences of opinion. It is important that Fianna Fáil and the PDs have agreed an effective programme for government."
Mr Smith was answering Leaders' Questions in the absence of the Taoiseach, Mr Ahern, and the Tánaiste, Ms Harney.
He was challenged by the Fine Gael leader, Mr Enda Kenny, to state if the Government continued to have collective responsibility. "Do we have a functioning Government? Has it started to reflect on the people's verdict of last week? Is it listening to the concerns of people?"
Mr Kenny and other Opposition deputies raised the case of a Tallaght man who had left his hospital trolley to go to the toilet, only to find his trolley occupied when he came back.
Mr Smith said Fianna Fáil and the PDs had made great strides in promoting social inclusion and ensuring that economic prosperity was more equitably spread throughout the communities.
The Government had increased the number of specialists in the emergency areas, Mr Smith added.
