Fianna Fail backbenchers are revolting over a controversial proposal from the Minister for the Environment, Mr Dempsey, to ban TDs and senators from holding local authority seats.
The dual mandate ban is included in the Local Government Bill 2000, which is due to be moved in the Dail in weeks.
Already, Mr Dempsey has been forced into two climbdowns on the Bill. Following protests, he has agreed to reverse his proposal to downgrade five urban centres from city borough to town council status.
He is also to amend his proposal allowing for the direct election of mayors and council chairpersons. While originally the Bill provided for any citizen to contest the elections, he is considering confining candidates to those with five years' local authority experience.
The Irish Times has learned that several Fianna Fail backbenchers have expressed strong opposition to the dual mandate ban. Many are fearful that without a local authority seat, their Dail seats could be at risk in a future election.
The matter was raised at the weekly meeting of the Fianna Fail parliamentary party yesterday. A number of TDs, including Mr John McGuinness (Carlow-Kilkenny), Mr Noel O'Flynn (Cork North Central), Mr Noel Ahern, (Dublin North West), Mr Billy Kelleher, (Cork North Central) and Mr Ivor Callely, (Dublin North Central) expressed their concerns at the change.
The Taoiseach, the Minister for the Environment, the Chief Whip, Mr Seamus Brennan, and the Fianna Fail Parliamentary Party chairman, Dr Rory O'Hanlon, have agreed to meet backbenchers to discuss the issue next week.
Mr McGuinness told The Irish Times last night he would not be in favour of a ban on the dual mandate unless there was electoral reform first.
"I believe the Dail should be reformed first. There have to be changes to allow us be true parliamentarians rather than the supercounty councillors we are at present."
A spokesman for Mr Dempsey said last night it had been policy since 1996 to ban the dual mandate.
He said the Minister was aware there were concerns and would listen carefully to what the TDs had to say.