The Government has come under strong pressure from backbench Fianna Fáil TDs to find more money to pay for 5,000 extra Community Employment Scheme (CES) places next year.
During last night's parliamentary party meeting, 30 TDs urged the Minister for Finance, Mr McCreevy, to plough extra resources into the popular CES programme on Budget day.
Meanwhile, it emerged that a cabinet sub-committee recently cleared a plan put forward by Labour Affairs Minister of State, Mr Frank Fahey, that would significantly expand the scheme.
Under Mr Fahey's proposal, some specially chosen CES employees would, in future, be given significantly more training over a year-long period to ensure that they move back into full-time jobs later on.
The CES would also be given formal responsibility to supply local services such as meals on wheels, and local cleaning projects, thus safeguarding their budget into the future.
In addition, over 55s and people living in job black spot areas in inner cities and remote rural areas would be able to stay on CES programmes for more than three years, the limit currently laid down.
However, the Cabinet sub-committee on social exclusion, which is chaired by the Taoiseach, Mr Ahern, did not agree on methods to finance the changes, which will cost several millions euro.
In a speech described as passionate by some fellow FF TDs, Mr Fahey told the Parliamentary Party meeting that the decision facing the Government is "the acid test" on which it will be judged by voters.
"There is an absolute need for the policy to be accepted. It is the critical decision for the party and the Government. If we are a left-of-centre party we have got to look after the most vulnerable people in our society.
"It offers the unemployed and the marginalised the opportunity to enhance their lives and the extra cost is only €28 a week on top of what they would get on social welfare," Mr Fahey told the meeting, sources said.
A motion put before the meeting by Limerick West TD Mr John Cregan was signed by 40 colleagues: "This can be done for a paltry sum of money," Mr Cregan declared.
However, Mr McCreevy who will unveil his Budget 2004 next Wednesday is so far resisting the demands for extra resources, Fianna Fáil sources claim.
Twenty thousand people worked on CES schemes throughout the country during 2003, along with 5,000 more on similar programmes such as the Jobs Initiative and Social Economy schemes.
Under Mr Fahey's plan it is understood that 5,000 extra CES places would be offered next year.