The Tánaiste has defended her handling of problems at State training agency FÁS, and said she will continue doing her job.
Mary Coughlan was backed by Taoiseach Brian Cowen, who said the Tánaiste had brought about necessary change at the organisation.
She said fresh revelations about how FÁS was managed had prompted her to ask the Attorney General to review the circumstances of Rody Molloy's departure last November.
But she defended her decision at that time to approve a generous severance settlement for him without seeking legal advice.
However, Labour Party leader Eamon Gilmore has said the Taoiseach should consider whether the Tánaiste is the best person to hold such a senior portfolio in Government.
Mr Gilmore said what has occurred in the past 24 hours calls into question the Tánaiste's ability and suitability to do the job.
He said her handling of the FÁS issue had been 'very much all over the place' and 'less than sure-footed'.
He said the Taoiseach should, as a result, look at her suitability, but stopped short of calling on Ms Coughlan to resign.
Mr Gilmore also said it was a matter for the Taoiseach and Minister for Finance to say what their involvement in the deal with Rody Molloy was and described the deal as extraordinary.
Cowen defends Tánaiste's actions
The Taoiseach defended the Tánaiste saying she had taken major decisions and effected changes 'in the interest of proper accountability and governance'.
Speaking in Donegal, Mr Cowen said: 'By doing that and effecting a swift and expeditious change, it seems that there is criticism being levelled at her by political opponents.
'The fact of the matter is she has brought about that change in a way which is consistent with the law, consistent with procedures that are laid down and the outcome and severance arrangements in line with guidelines that are established.'
However, Fine Gael leader Enda Kenny has called on the Tánaiste to go before the Dáil's Public Accounts Committee, and outline the Government's point of view regarding the issues of controversy at FÁS.
Speaking in Dublin, Mr Kenny said he could not understand why the Cabinet, in making the severance settlement with the former Director General of FÁS last November, did not ask for legal advice from the Attorney General.
He said the Tánaiste should now go before the PAC and tell the story from the Government point of view.
Gains for FG at expense of Labour - poll
Meanwhile, the latest opinion shows marginal changes in party support, with Fine Gael gaining at the expense of Labour and the Greens.
The Red C poll in tomorrow's Sunday Business Post shows that support for Fianna Fáil is unchanged at 24%.
Fine Gael gains two points to 35%, a rating it has reached only once before in a Red C poll, in November 2008.
Support for Labour has dropped one to 18%, while the Greens drop one to 4%. Sinn Féin is unchanged at 8% support and Independents and others are also unchanged at 11%.
Gilmore upbeat over TNS poll results
Earlier, Mr Gilmore said the results of today's TNS/mrbi poll in today's Irish Times were the best ever for the Labour Party.
The poll shows that Labour has increased its support by one point to 25%. Support for Fianna Fáil is at 20%, up three points since the last poll three weeks ago, while Fine Gael dropped three points to 31%.
Mr Gilmore said the political contest in this country is very much a three way one and showed that increasing numbers of people are looking to the Labour Party.
Mr Gilmore said if Fianna Fáil is taking any comfort from a small bounce in the poll they really are clutching at straws and any government with a dissatisfaction rating like this Government, should do the decent thing.
The Labour leader was speaking in south Dublin where he was campaigning for a Yes vote on the Lisbon treaty and said his party was working on the assumption that it will be a very close referendum.
He said Labour would continue to ask people to vote Yes right up until polling day, because it is important for the country, for jobs and investment and economic recovery.
Mr Gilmore asked voters to set aside how they feel about the Government and make their decision in the best interests of the country.
