Fine Gael TD Mr Michael Noonan described remarks which appeared to be directed at Labour party TD Mr Emmet Stagg in the Dail yesterday as "possibly the worst personal insult" he ever heard in the Chamber in almost 20 years.
Mr Stagg said later he had been assured by the Minister for Finance that Mr McCreevy's remarks were not directed at him.
Under pressure from the Opposition to answer questions on the O'Flaherty affair, the Minister for Finance was taking private notice questions when he raised the issue of people being given a second chance with Mr Noonan.
"Deputy, there are members in your party around and about you and sitting in the front row to your right who were given a second chance and some of them should recall that very well," the Minister said.
Among those sitting to Mr Noonan's right were Mr Stagg and Fine Gael TD Mr Phil Hogan.
Mr Noonan responded, saying the comment was "beneath" the Minister. Deputy leader of the Labour Party Mr Brendan Howlin said the comment was "contemptible" and Fine Gael leader Mr John Bruton said the Minister should "get out".
"I protest at the Minister's attempt to drag a person's private life into this debate," added Mr Noonan.
Mr McCreevy responded saying that he had not named anybody, while Mr Bruton was pointing out that none of the Minister's colleagues in the Chamber supported the remark.
Last night, Mr Stagg said he had telephoned Mr McCreevy afterwards and asked if he had been referring to him.
"Minister McCreevy said he had not been referring to me," he said.
Mr Noonan said that since he was elected to the Dail, it was "possibly the worst personal insult, except that he did not name the deputy. There was a mixture of shock and concern afterwards. People did not have the heart to pursue it after that, it closed down the question time."
He said there was a procedure whereby deputies can make personal statements in the Chamber and Mr McCreevy should avail of that facility and "apologise to any deputy he offended".
Mr McCreevy was on his way to Lebanon last night. A Government spokesman said that the Minister had "definitely" been referring to Mr Hogan, apparently in relation to an incident in 1995 when Budget details were faxed in advance to an evening newspaper from his office.