The Minister for Defence, Mr Smith, insisted that the parts of the Hanly report dealing with Nenagh and Ennis hospitals had been changed.
Amid sharp exchanges with the Labour leader, Mr Pat Rabbitte, the Minister, who represents Tipperary North in the Dáil, said: "With regard to the Hanly report, Deputy Rabbitte has indicated that both for Ennis and Nenagh hospitals, the accident and emergency services would be changed. As Deputy Rabbitte knows, even though he has outlined it, that aspect of the report has been changed."
Mr Smith added that Dr McAvinchey, of Nenagh hospital, had "stated, for everybody to hear, how he and others were satisfied with the new arrangements which are being put in place to ensure that accident and emergency services continue in those two hospitals".
The main thrust of what was contained in the Hanly report would be implemented, but changes had been made in the accident and emergency services.
Mr Rabbitte said that the only change in respect of Nenagh hospital was that two years' grace had been given to get the Government past the local and European elections. "This threat exists right across the spectrum."
He challenged the Minister to tell the House precisely how policy on accident and emergency provision had changed. Since when would Hanly be implemented everywhere else but not in Nenagh?
Mr Smith replied: "Once again, Monsieur Lapin has got it wrong. The situation in Nenagh is not as Deputy Rabbitte has described. I know Deputy Rabbitte would love to convince the people in north Tipperary and elsewhere that the change will be only made for two years, but that is wrong."
Mr Rabbitte said: "Of course, it is. They told me. I was there."
Mr Smith insisted that what Mr Rabbitte was saying was untrue. "The deputy's party has a disgraceful record as far as the county hospital in Nenagh is concerned, at a time when it had the resources and the health and finance portfolios."
Earlier, Mr Rabbitte said that the Taoiseach had recently told the House that the Hanly report was Government policy. "The purpose of the Hanly report is to reduce Nenagh and Ennis hospitals to the status of local hospitals, with a nurse-led, minor injury unit provided during daytime."
He added that the Minister for Health, Mr Martin, had compiled an aide-memoire for Government setting out that €400 million worth of capacity was lying idle. "It cannot be equipped or commissioned because of the absence of funding."
Mr Smith said that last year, for the first time, more than one million patients were treated between in-hospital and out-patients facilities, 47,000 more than the previous year. He added that there had been a number of projects which had been completed but had not been opened. "Negotiations are continuing between the Minister for Health and the Minister for Finance for the additional resources that will be required for that but every project will be opened."