Last Monday both Mary Harney and Liz O'Donnell found themselves in front of television cameras being asked whether refugees would be housed on flotels, and neither knew the answer.

In the circumstances, they achieved the political necessity of facing in two directions. Each made it clear they didn't like the idea - Ms O'Donnell said the idea conjured up images of prison ships - while each also said they might be used as a last resort and a temporary measure.

At the next day's Cabinet meeting, the Taoiseach outlined what the Government planned to do, but whether flotels were to be used was still unclear. Ms Harney spoke straight after Mr Ahern, still not knowing what she would have to say if asked the question again in front of a television camera. She didn't like the idea, but would defend it if necessary. "Are we getting flotels or are we not?" she asked.

It was not only the PDs who did not like the flotel idea. The concept had dominated debate on asylum-seekers for several days, and a number of Fianna Fail Ministers expressed concern about how the measure would be perceived.

However, the Minister for Justice, Mr O'Donoghue, is believed to have taken a robust position: Ministers could decide against flotels if they wanted, but if they did, they should not come crying to him in future if the numbers of asylum-seekers grew further and there was a renewed accommodation crisis. They were not his ideal solution either, he said, but they were needed. To reinforce his point, Mr O'Donoghue is believed to have warned that the inflow of around 1,000 asylum-seekers per month could increase significantly, placing further pressure on the accommodation provided. The flotels were agreed.

These vessels will provide just 1,000 of the 8,000 temporary accommodation places announced by the Government this week. Yet the Government has stuck doggedly to the idea, creating a suspicion, voiced by the Opposition, that these floating prefabs are there as much to send out a signal as to provide accommodation.

Government sources deny this vehemently. There is an acute shortage of accommodation places, and every available option is needed, they say. In addition, while the other 7,000 temporary accommodation places will take time to be put in place, the flotels can be leased, towed to Ireland and put into use within weeks.

The Cabinet on Tuesday also resolved that it would be more active in challenging accusations that its attitude is hostile to foreigners - even racist - an image Mr O'Donoghue and other Government sources say is grossly unfair. Some amendments were therefore made to the proposal put to Government in order to emphasise its positive aspects. The new agency to deal with the integration of immigrants into Irish society was highlighted, as was the provision of 4,000 permanent accommodation places. Twice this week the Minister for Justice responded to opinion pieces in this newspaper that he regarded as unfair.

After several years of short-term reaction to a growing problem, the Government now has what appears to be a coherent policy on asylum and immigration. With 20,000 asylum-seekers currently on the Department of Justice's books and a further 1,000 arriving every month, the Government has moved to speed up the processing of asylum applications. Manifestly unfounded cases will be dealt with particularly quickly. By June, the Government expects that all new applicants will be fully dealt with within six months of their arrival.

A statutory agency, the Reception and Integration Agency, is to be set up to plan and co-ordinate the provision of services to asylum-seekers, and the integration of refugees.

Tuesday's Cabinet meeting decided to build 4,000 permanent spaces plus an additional 8,000 temporary accommodation spaces for asylum-seekers. Of the temporary accommodation, 4,000 spaces will be provided in prefabricated units, 2,000 in hotels, guest-houses or hostels, 1,000 in mobile homes, and 1,000 in flotels. Work on sites for reception centres began yesterday, with the Government invoking a little-used section of the Planning Acts to exempt the structures from planning requirements.

The short-term accommodation will be provided on a full-board basis, supplemented by social welfare payments of £15 a week for each adult and £7.50 a week for each child. The provision of food and other necessary services, such as laundry, will be contracted out to private suppliers.

Aside from the asylum issue, the Government has also agreed on the principles of a policy on immigrant workers from outside the European Economic Area. The scheme will be targeted initially at those with information technology expertise, engineers, scientists and nurses.

Business representatives see the policy as conservative, but it is coherent. While moving to plug particular gaps in high-skill areas, the Government has resisted demands from IBEC and other employer organisations for the creation of a pool of low-skilled immigrant workers to fill the many vacancies in catering and retail and other service industries.

FAS estimates that 6 per cent of jobs in the State are currently vacant. The highest vacancy rates, 11 to 16 per cent, are found in high-skill sectors such as information technology, engineering and science. However, the largest numbers are required for less skilled production, service and retail jobs. Under pressure from the trade union movement, the Government has accepted that the creation of a pool of low-skilled foreign workers could be used by employers to drive down wages, exacerbating racism.

The Tanaiste and Minister for Enterprise and Employment acknowledged these concerns during the week, suggesting Irish workers could be displaced by inviting in low-skilled foreigners. In addition, pockets of long-term unemployed people exist in the State together with the large numbers of unfilled relatively low-skill jobs. Matching these up is still an unfulfilled policy objective.

The Government's planned work-visa programme is based entirely on the State's economic self-interest. It is open to the charge that it is may strip developing countries of some of their more highly qualified workers, while the low-skilled, some of whom may well end up as bogus asylum-seekers in Ireland, are being left at home.

A number of humanitarian concerns remain unanswered. Will these migrant workers be allowed to come here with their families? Will they be sent home once an employer decides he or she does not want them any more? Will there be a rapid annual turnover of migrants being sent home and replaced by new ones, or will those here for a period of time acquire any rights of residence?

These are matters that will be fleshed out over time. The Government has at least enunciated a clear policy.