The Minister of State with responsibility for the National Drugs Strategy, Pat Carey, has said the Government will have to look at introducing needle exchange programmes across Ireland.
He was speaking at the launch of Merchant Quay Ireland's annual report.
The charity, dedicated to helping the homeless and drug addicts, has called for the setting up of more local treatment centres throughout the country for drug abusers.
Its report records an increase in homelessness among immigrants from countries which most recently joined the EU.
Merchants Quay Ireland has been working with homeless people and drug abusers for almost 20 years, and says it is once again pointing out the large number of people using its services.
In 2006 alone, it says more that 1,700 new addicts availed of its syringe exchange service.
Director Tony Geoghegan called for increased investment in the service at local level, saying that while media attention has focused on cocaine use in recent times, heroin remains a major problem, not only in parts of Dublin but across Ireland.
The charity says there has also been increased demand for its homeless services from people from the new EU member states, with staff seeing up to 50 such people a day.
It is also calling on the Government to abandon current regulations which prevent such newcomers from receiving social welfare assistance.