The second stage of the Local Government Bill was passed in the Dáil today following a debate on the general principles of the proposed legislation.
A Government spokesman told ireland.comthis evening the Minister for the Environment Mr Dempsey will ask the Cabinet next Tuesday to proceed with the Bill without the controversial dual mandate provision.
It was feared, he said, the second of the five stages necessary for the Bill to be finally passed into legislation would fail this afternoon unless the Minister made an assurance to address the matter next week.
Earlier today the PDs severely criticised the Independent deputies whose call for the dual mandate ban to be dropped resulted in demands for Mr Dempsey's resignation.
The Labour Party asked for Mr Dempsey's resignation over the Bill while Fine Gael said the whole Government should stand down.
Under the Local Government Bill Mr Dempsey had proposed to end the current system whereby Dáil members could also hold a local authority seat.
But Ms Mildred Fox, Mr Jackie Healy-Rea, Mr Harry Blaney and Mr Tom Gildea said their political survival at national level depended on the retention of their local council seats and threatened the withdrawal of their vital support for the Coalition should Mr Dempsey proceed.
Mr Dempsey conceded last night and dropped the Bill.
PD councillor Ms Fiona O'Malley said the four TDs were "selfishly looking after their own narrow interests" to the detriment of local government.
Ms O'Malley said the decision was against the interests of local communites and said local government reform was "long overdue" as "huge areas of local government work are continually delayed because local authorities can only meet on Mondays and Fridays simply to facilitate Oireachtas members".
Today the Labour Party called for the Minister's resignation, claiming it had offered its support for the Bill and the Government was not dependent on the four Independents to pass the measure in the Dáil.
And Fine Gael's spokeswoman on local government and housing, Ms Olivia Mitchell, called not only for the Minister's resignation but for the entire Government's.
"If the cornerstone of Minister Dempsey's most significant piece of legislation can be removed on the whim of the ex officio cabinet then the Government can clearly no longer govern," she said.
Ms Mitchell added: "When the tail starts swinging the cat to this extent it is time for the Government to consider if remaining in Office is damaging the democratic process."
But a Government spokesman said last night the partnership between Fianna Fáil, the PDs and the Independents had "worked very well" to date and said this was the first occasion the Independent TDs had put pressure on the Government.