Taoiseach Bertie Ahern denied that the Health Service Executive (HSE) was planning to cut 1,000 jobs.
Mr Ahern said there were 108,000 whole-time posts in the HSE last year.
"There were no cutbacks in the health service. The staff was sanctioned subject to certain conditions, as happens in every sector, across departments and local authorities. Last year there was an increase of 10,000 on the existing approved ceiling, and this year is the same."
Fine Gael leader Enda Kenny said he had a document from the HSE which stated clearly there was a requirement on it "to effect a 1,000 whole-time equivalent reduction by the end of 2007".
He added that in May Minister for Health Mary Harney had agreed with an interviewer that current services would be delivered by 1,000 fewer employees.
"She agreed that the statement was correct," said Mr Kenny. "The Taoiseach stated on the following day, May 23rd, 2007, that this was the first he had heard about this cutback. He continued to state the document referred to by the HSE had or has no status and was irrelevant."
Mr Kenny said the Taoiseach was aware also that the finance section of the HSE comprised more than 1,000 staff.
"A study of that function found at least 380 of those jobs were superfluous. There has been an orgy of promotions within the administrative ranks of the HSE."
Mr Ahern said the Department of Health had given sanction for a revised employment ceiling for the health service for the end of 2006 or 108,000 whole-time equivalents, subject to certain conditions.
"This represents an increase of 10,400 on the existing approved ceiling. If I understand Deputy Kenny's argument correctly, it is that there is a reduction of 1,000 staff," Mr Ahern added.
"If he is saying the HSE has increased its figures substantially above its approved ceiling, and is trying to bring it back in line with its own ceiling, all I would say in reply is it should not have gone above its ceiling in the first place."
