The German interior minister appears to have criticised Ireland's approach to data protection oversight by drawing comparisons with the lack of regulation leading to the banking collapse.

Asked by RTÉ News about Ireland's concerns about an overly complex data protection regime in Europe, Thomas de Mazière said: "We don't want to have the same disaster like we've seen in the financial system a few years ago."

Ireland has been accused by privacy advocates of pursuing a lax regulatory regime for data protection, a charge the Government has vehemently denied.

EU interior and data protection ministers have arrived in Brussels to agree on a new data protection regulation to replace a 1995 directive.

The new regulation foresees a one-stop-shop, whereby a citizen's first point of entry if they feel their privacy has been breached by a hi-tech company or a retailer is their national data protection commissioner.

However, member states appear to have rejected Ireland's push to prevent a flood of appeals if data protection commissioners in other countries feel that the Irish regulator has been too lenient towards a tech giant such as Facebook or Google.

According to the Government, 29 out of 30 of the world's leading data companies are based in Ireland.

That means that if there are complaints by citizens about any of those leading companies, then the Irish data commissioner will necessarily become involved.

"Yes, it will create more work for our data protection commissioner," Minister for Data Protection Dara Murphy said on arrival at the meeting.

"We have doubled resources, we're opening a new office in Dublin and the doubling of staff will take place to take into account the additional workload."

Under the new system, data protection commissioners in other member states can appeal a decision by the Irish commissioner since Ireland hosts so many hi-tech companies.

The Government had tried to restrict the appeals process by requiring that an appeal must come from a cluster of countries, instead of just one.

"We would have preferred if decisions taken locally were binding, and a couple of other countries were strongly supportive of that view," said Mr Murphy.

"We're willing to see how it will work over the next couple of years.  The appeals process is something we want to work quickly and efficiently, and won't add to the additional burden and administrative difficulties."

However, the German interior minister said: "What we want, and what we've reached, is a system, what we call a one-stop-shop, so the companies can be located in Ireland, but it is important that we have a common decision for all of Europe.

"We don't want to have the same disaster like we've seen it in the financial system some years ago."

The Government has said that Ireland has a "proud record" of independent agencies, noting that the Irish data protection commissioner carried out two "tough" audits of Facebook.