The IRA statement, containing the offer to shoot the killers of Robert McCartney, was described as extraordinary by Taoiseach Bertie Ahern.
He also repeated his view, expressed outside the Dáil, that it was so outrageous and offensive that the Government's views must be made clear.
"While it is not our practice to comment, the only statement in which I am interested is the one made by the people when they voted for the Good Friday Agreement," he said. "That statement makes it clear there is no place for violence of any kind by any organisation in the country."
Mr Ahern was replying to Fine Gael leader Enda Kenny who also described the statement as outrageous.
Sinn Féin's leader in the Dáil, Caoimhghín Ó Caoláin said: "Regarding the most recent IRA statement on the murder of Robert McCartney, I want to register my disappointment on two counts.
"I am disappointed that a physical attack on those responsible was even contemplated. I am further disappointed that the IRA statement, which is a very detailed account of what occurred and a positive contribution to achieving the truth, has been, in the main, wilfully ignored. I urge people to re-evaluate it."
Mr Ó Caoláin commended "Sinn Féin president Gerry Adams for his continuing role in support of the McCartney family's search for truth and justice which I fully support".
Labour leader Pat Rabbitte asked Mr Ahern if he agreed it was very difficult to see how the unionist population in the North, whether represented by the UUP or the DUP, could enter into discussions to get devolved government in Northern Ireland "against the backdrop of such a blatant manifestation of the republican movement's living in what the Minister for Justice quite properly calls a twilight zone".
Mr Rabbitte said the statement beggared belief.
"The Taoiseach has been struggling to keep the door open to Sinn Féin. Unless there is a statement from the leadership of the republican movement which repudiates this statement and its implications, and which takes a step towards the disbandment of the IRA, I cannot see how the Taoiseach can reasonably believe the unionist population will respond to any initiatives in this regard," he said.
Green Party leader Trevor Sargent said he regarded the IRA statement as "gratuitous and quite insulting" to put to the family of a murder victim.
"To offer them a further murder is incredible," he said
He urged the Taoiseach to re-establish the Forum for Peace and Reconciliation to allow civic society to involve itself in trying to bring about some consensus on how progress could be made. It would also allow people who had effectively felt silenced and sidelined to engage again and to generate a level of momentum which could get the process going once more.
