Trocaire, the Catholic development agency, has added its voice to criticisms of the Government's freeze on overseas aid next year.
The Opposition parties have accused the Minister of State for Foreign Affairs, Ms Liz O'Donnell, of capitulating to the Minister for Finance in the row over aid.
But Ms O'Donnell says her critics have misunderstood the package announced this week.
Earlier this month, she said she would not rule out resigning when it appeared that Mr McCreevy, intended to freeze aid spending. This week, she announced spending will remain frozen at current levels for 1999 but will increase by 66 per cent over the following three years. The total amount for country programmes, aid agencies and emergency relief will be £400 million over the period - an increase of £62 million.
While the extra money is welcome, "this may not get us back on track to the Government's own target of Overseas Development Aid reaching 0.45 per cent of Gross National Product by the year 2002," said Mr Eamonn Meehan, of Trocaire. But Ms O'Donnell said the 66 per cent increase in overseas aid could be increased.
"The 66 per cent increase secured on discretionary spending over the next three years is a guaranteed minimum," she said. "It does not prevent us securing additional funds - including funds to emergencies - to meet our GNP targets."
"The Government has already reneged on its pledge to increase overseas spending every year," said Mr Meehan in a statement. "For the first time in six years we have seen the aid budget cut as a percentage of GNP. How do we know the Government will not do the same in the years to come?"
The Fine Gael TD, Mr Bernard Durkan, called on Ms O'Donnell to resign. "By continuing to remain in office after she had previously promised to resign unless targets were met, the Minister of State is in fact indicating that she approves of the lower level of funding."
The Labour Party spokeswoman on development co-operation, Ms Joan Burton, said "the three-year expenditure plan is a fudge designed to get the Government off the hook created by Minister O'Donnell's resignation threat.
"She has caved in to Charlie McCreevy's argument that we are getting too rich too quick to adhere to the international target for development aid."
The leader of Democratic Left, Mr Proinsias De Rossa, said the Government package was "shameful" and that Mr McCreevy "has clearly won the political battle with the Minister for State".
Ms O'Donnell yesterday announced a further £2 million humanitarian aid allocation out of the 1998 budget, to help relief efforts in Central America, Sudan, Rwanda, Bangladesh, the Philippines, Bosnia and Chechnya.