The Minister for Tourism, Sport and Recreation, Dr McDaid, was accused of blatantly misleading the Dail in a row over the Government's plans on regionalisation and the EU urban programme.

Mr Proinsias De Rossa, the DL leader, said that if Dublin and Cork lost their EU Objective 1 status they would no longer qualify for the urban programme for the development of disadvantaged communities. He said that the Minister had set about "trying to confuse the whole issue".

There were sharp exchanges when the Ceann Comhairle, Mr Seamus Pattison, called on Mr De Rossa to leave after he accused the Minister of misleading the House and then refused to withdraw the allegation.

When Mr Pattison said that if Mr De Rossa did not withdraw the remark or leave the House for the day he would "name" the deputy, which would mean an automatic suspension of two days, Mr De Rossa said that he was "leaving anyway".

The Government was intensely aware of the problems of large disadvantaged urban areas and the Taoiseach had made it clear that these areas, some in his own constituency, would not lose out on funding, Dr McDaid said. The EU provided just 2 per cent of the Social Fund, while the Exchequer contributed 98 per cent.