Taoiseach Leo Varadkar said he understands that discussions are "ongoing" between the owner of a Mayo hotel, that was due to house International Protection applicants, and the Department of Integration.
A protest has been taking place outside the former JJ Gannon's hotel on Ballinrobe's Main Street in Co Mayo.
Protesters say they want assurances from the Department of Integration that plans to house 50 asylum seekers there will not proceed.
Mr Varadkar said he "totally" acknowledges that people locally have concerns and fears and that their fears must be allayed with communication and provided information.
Speaking on RTÉ's This Week, he said: "I also need to be very clear. Nobody in a free society, nobody in a democracy has a right to exercise a veto on who moves into their area or community. That doesn't just apply to international protection."
He said comments made by local Fine Gael Councillor Michael Burke about the situation do not reflect Government policy. He said while he understands his concerns, he has outlined the alternative.
"I have said back to him very clearly the situation we are now facing is that the alternative to providing accommodation centres is people on the streets.
"We already have 400 people at the moment who we are not able to provide any accommodation for. So, this isn't an ideal situation," said Mr Varadkar.
He referred to the hundreds of thousands of people moving around the world due to poverty or who are fleeing war and he said he is not surprised that some of these people are coming to Ireland.
He said Fine Gael will allow its councillors leeway when it comes to how they deal with local issues but the party will not tolerate any form of racism or any form or misinformation.
Mr Varadkar said there is a responsibility to reassure people that Ireland's immigration system is rules based and "we are fair and welcoming" to those who come here legally.
"And that we are also firm and tough on those who do not."
He said there are a lot of myths being spread by the far right and now they are becoming quite mainstream and "repeated even by mainstream politicians and mainstream journalists".
"We have a big job of work to do in Government being in charge of this debate and [to] ensure people get the right information."
He said immigration and migration for Ireland has been a good thing. "We would not be able to run our public services without migration."
He also said a huge number of communities have accepted people from Ukraine and other countries and "we should not forget that".
Anti-racism drive calling for locals to oppose protest
Mr Varadkar's comments come as an anti-racism campaign in Mayo has called on people in Ballinrobe to oppose the ongoing protest outside the hotel in the town, which had been earmarked to house asylum seekers.
In a statement, United Against Racism Mayo said it opposed any attempt to block the accommodation of refugees or those seeking International Protection.
The group condemned what it described as the "fear mongering of a tiny minority of locals" and other "agitators" involved in the protest.
It has called on the public to remember the Irish experience of emigration and to assist those travelling here seeking protection.
Those organising the protest in Ballinrobe citied concerns about the backgrounds of those who may be accommodated there, as well as claiming the plan would put additional pressure on the town's infrastructure and facilities.
In a statement, the Department said it contracted accommodation in Ballinrobe to provide temporary shelter to International Protection applicants. It is intended that 50 people would be accommodated at the premises.
It said that a full briefing document was issued to local TDs, Senators and councillors on 4 January. This was done by the Department's Community Engagement Team in advance of the accommodation being used.
As of this weekend, the Department said it is continuing to engage with the provider in relation to the premises in Ballinrobe and its use for International Protection applicants.
"The situation in relation to accommodation for International Protection applicants more broadly remains extremely challenging, and the Department remains unable to offer accommodation to many newly arrived IP applicants at present," it said.
Mr Burke said he had spoken directly to the hotel owner, and had received assurances that the building would not be leased to the Department.
Cllr Burke said the proprietor had assured him that there would be no further engagement with officials in relation to the use of the property. Protesters say they want written assurances to this end.
Meanwhile, the Irish Refugee Council has warned that more than 450 International Protection applicants are "without accommodation in freezing temperatures" with the cold weather set to continue this week.
It made the statement on social media platform X in response to the situation in Ballinrobe.
