Taoiseach Bertie Ahern has told the Labour Party that its proposed legislation to prevent Irish Ferries from reflagging its ships from Ireland to Cyprus was "completely ineffectual and legally unsustainable".
In a letter to Labour leader Pat Rabbitte last week on the party's proposal, he said it was a "stark reality" that under European law Irish Ferries could not be prevented from reflagging in Cyprus, a move that would mean it did not have to comply with Irish minimum wage and employment legislation.
He said the Labour Bill would not solve the problem but would "compound the situation by unfairly raising expectations of a legislative solution".
It served "no purpose to provide the illusion of a solution which is not, in fact, available".
Meanwhile, Mr Ahern is due to have lunch today with the Cypriot president Tassos Papadopoulos, who is on an official three-day visit to Ireland.
The reflagging issue is not listed for discussion during the lunch but it is expected that Mr Ahern and Mr Papadopoulos will touch on it during talks.