The Tánaiste has called for a half billion euro investment in care in the community for older people, using the money currently being spent on tax breaks for Special Savings accounts.
In her speech to the PD's National Conference in Killarney, Mary Harney also called for increased competition in transport services, and denied the Government's proposed referendum on citizenship rights was racist.
Ms Harney also said there can be no accommodation, no ambiguity and no tolerance for terrorism.
Minister for Justice addresses conference
The Minister for Justice Michael McDowell has sharply criticised the Provisional IRA and anyone who brought dishonour on the Irish flag.
In his address to the Progressive Democrats party conference in Killarney, he said true republicans were not involved in violence and did not finance political campaigns by crime.
Meanwhile, delegate John Kenny called on the IRA to pay compensation to victims of paramilitary violence.
In a separate development, Junior Health Minister Tim O'Malley described conditions in the Central Mental Hospital in Dundrum as 'appalling', and promised a new mental hospital in coming years, funded by selling off land attached to hospitals.
Mr O'Malley backed a proposal for a new medical school in his hometown of Limerick, saying the country needed more doctors to double the number of consultants.
He also said the National Treatment Purchase Fund had taken 12,000 public patients off the waiting list since it was set up two years ago.
Junior minister's announcement
Junior Minister at the Office of Public Works, Tom Parlon, announced a one-acre site on Dublin's Ladd Lane had been sold for ¤22m, which he said would be used to pay for office space in the regions for the Government's decentralisation programme.
The conference also heard criticism of Dublin's Lord Mayor, with delegate Tony Williams describing Royston Brady as 'a symptom of everything that is wrong with our system of local government'. He called for directly elected mayors with real executive powers.

