The Minister for Social, Community and Family Affairs claimed there was "scare-mongering and the spreading of false rumours" about possible changes to the Broadcasting Bill.
Mr Ahern was speaking during the resumed debate on the Fine Gael private member's motion criticising the Government's broadcasting policy, including digital television and the privatisation of RTE's transmission network. The motion also called for the indexation of the licence fee, as authorised by the previous government.
The Minister said RTE's primary role was that of a national broadcaster.
"Its broadcasting activities are not being privatised. But it should be remembered that the original proposal to sell the transmission network, which RTE controls, came from the station itself when it suggested the establishment of DIGICO. So let us not get caught up in spurious ideological debates."
Mr Ahern said that the State had provided the transmission hardware at a time when there was only one television station and one radio station, both in public ownership.
Mr Donal Carey (FG, Clare) said the Broadcasting Bill should be withdrawn. "It is a shambles. If the Department officials do not get the Minister to withdraw it, it will reflect on themselves as well."
The Government defeated the motion by 80 votes to 69.