THE admission by the former Minister for Health, Mr Howlin, that the Government decided the legal strategy in the McCole case has provided the Opposition with the ammunition to pursue the hepatitis C scandal in the next Dail term.

The comments, which gave rise to fresh controversy, were discussed by Mr Howlin, the Taoiseach, Mr Bruton, and the Minister for Health, Mr Noonan, yesterday.

As the Dail rose for the Easter recess, senior sources admitted that Mr Howlin's remarks on RTE's Liveline programme on Tuesday had given fresh stimulus to the affair.

Attempts by Fianna Fail's health spokesman, Mr Brian Cowen, to have the Dail adjourned in order to debate Mr Howlin's "revelation", failed. However, Mr Cowen insisted that the Taoiseach should explain why the Government authorised a legal strategy which was so insensitively pursued "against a defenceless and dying woman".

Mr Bruton said the Government acted in this matter in accordance with legal advice as any government defending the appropriate interests of the taxpayer would have to do. At the time the Government was discussing the matter, it wanted to set up a "non adversarial system for the quickest dispensement of compensation to the victims" and did not want to be involved, as a priority, in legal cases.

It was not possible for the Government to "ignore legal advice about liability in regard to taxpayers' funds".

A Government spokesman last night denied Mr Ahern's claim that a speech by Mr Noonan "attacking the legal team of the late Brigid McCole" was drafted by the Attorney General, Mr Dermot Gleeson.

Mr Cowen said that he had taken legal advice which strongly contradicted assertions by the Taoiseach and the Minister that the Oireachtas could not attempt to deal with the issue of how a court case was handled.