The Labour Party has claimed the Minister for the Environment, Mr Dempsey, has a conflict of interest as the Minister responsible for electoral spending limits and Fianna Fail treasurer.
Labour's environment spokesman, Mr Eamon Gilmore, said the news that Fianna Fail was about to sell its Dublin headquarters for an estimated £2 million highlighted this conflict.
"It can hardly be a coincidence," he said, that the sale was taking place within weeks of the publication by the Minister of a Bill to increase election spending limits.
"The author of the Bill, Minister Dempsey, is also joint treasurer of Fianna Fail and is likely to have been closely involved in plans for the sale of the Mount Street premises," he said.
The resulting "windfall" for the party together with "their continued ability to tap into the corporate sector" would enable Fianna Fail to raise the £3 million Mr Dempsey was going to allow them to spend, he said. No other party would be able to compete with these financial resources, he maintained.
Mr Dempsey has defended his decision to raise election spending limits, saying he has believed for some time that the existing limits were too low.
The 1997 Electoral Act provided for expenditure limits of £14,000 per candidate in a three-seat constituency, £17,000 per candidate in a four-seater, and £20,000 per candidate in a five-seater.