The Tánaiste has rejected criticism that she did not act quickly enough on the FÁS controversy.
Mary Coughlan categorically denied a suggestion by Labour Party leader Eamon Gilmore that she did not act as swiftly as required.
Speaking on Morning Ireland, Mr Gilmore said the Government knew about the overspending in FÁS almost 18 months ago and failed to do anything about it.
Mr Gilmore also called on the Taoiseach to clarify the guidelines under which the severance package for former FÁS Director General Rody Molloy was agreed.
Later, Mr Gilmore called on the Taoiseach to reappoint the Tánaiste to a different ministerial position in light of the how she has handled the controversy.
Ms Coughlan said she received a report on FÁS on her appointment as Minister and acted immediately on that.
She said she knew in her experience as a politician in meeting with the chairman and Director General of FÁS that Mr Molloy was going to be reluctant to move aside.
Following Mr Molloy's interview on RTÉ News, Ms Coughlan said she knew his position was untenable and it was distracting from the role of FÁS.
Equally, she said she knew he would not move unless he obtained an enhanced package with regard to his entitlements.
The Tánaiste said the package was recommended fully within Department of Finance guidelines and under the Labour Services Act.
