The terms of reference of the inquiry into organ retention are to be finalised shortly, the Minister for Health said.

Mr Martin added that no decision had yet been taken on the person, or persons, to conduct the inquiry. "I consider this matter to be of major importance, and I am concerned that the issues arising should be addressed in a way which will have full regard to the sensitivities of the parents and families concern.

"In all the circumstances, therefore, and particularly in the best interests of all the families affected, I consider it best to refrain from commenting on the detail of the allegations and so forth, which have been made and, in that respect, await the outcome of the inquiry."

Mr Martin said while he appreciated the faculty of pathology had issued guidelines covering post-mortem practices, the outcome of the inquiry would also influence future policy and practice in that area. He also intended establishing a working party to advise on any legislative requirements in that area and, in particular, on the updating of the existing legislation regarding human tissue.

It was now apparent, he added, that the practices and procedures followed by Our Lady's Hospital for Sick Children, Crumlin, were not confined to that hospital. He could assure the House the inquiry would provide for a review of post-mortem policy, practice and procedure in the State since 1970. It would be empowered to examine any specific cases in any hospital in the State.

He told the Fine Gael spokesman on health, Mr Alan Shatter, he was reflecting on whether the inquiry would be statutory or non-statutory. "I do not necessarily accept that the statutory route is the only one to ensure we have access to all the documentation or co-operation from all concerned. There are a number of considerations, which I discussed yesterday with Parents for Justice.

"Their legal representatives made it clear to us that they were looking for a statutory inquiry. The length of time such an inquiry would take and, indeed, could potentially take, to conduct its activities is a matter of concern to me. There is much trauma arising out of this issue. It is important we genuinely look at how the format of an inquiry would impact on people. The duration, in that sense, is an issue."