Independent TD Michael Lowry has said Roscrea in Co Tipperary is an example of an asylum system that is not working.
Speaking as the Dáil returned, the Tipperary TD said that the town has reached its capacity and Roscrea has been let down by the Government.
The garda public order unit was present outside the hotel while the international protection applicants, understood to be women and children, were being brought into the premises.
There were stand-offs between protesters and gardaí as the operation took place and a significant number of gardaí remained present for some time.
Mr Lowry said today that the Government is now involved in face-saving proposals and is making up its policy as it goes along.
He said it is comical politics for a Government to close one hotel and open another, but for the sake of the town it should be considered.
Mr Lowry also suggested that a grant-aided private purchase of the property could be looked at.
Minister for Social Protection Heather Humphreys said the Government would work with Tipperary County Council around developing a community hotel.
People Before Profit TD Bríd Smith said the problems seen in Roscrea in recent days were the Government's fault.
She said she was angry to see the scenes of violence and seeing "women and their children being frightened and bullied and harangued and harassed".
Why is it happening, she asked. She said that the Government's housing policy and the lack of delivery on public services had led to the anger of ordinary people, whipped up by the lies and viciousness of the far-right.
Policy 'not working'
Independent TD for Tipperary Mattie McGrath also blamed the Government for its mishandling of the affair.
He said there was a need for a full debate on immigration, saying the policy was not working.
Earlier, Labour's Aodhán Ó Riordáin said the protests in Roscrea this past week were "regrettable" and that the vast majority of communities have no issue and do not protest when asylum seekers are moved in.
The Dublin Bay North TD said the scenes outside Racket Hall Hotel in Roscrea were shocking and reminiscent of the US deep south or of Holy Cross School in Belfast.
Mr Ó Riordáin said the Government had mishandled the information campaign and while it had got better at communication recently, this issue is going back two years.
He singled out Mr McGrath for his use of the term "colonisation" when referring to refugees.
Social Democrats TD for Wicklow Jennifer Whitmore also criticised Mr McGrath, saying that politicians and local representatives should not abuse their platforms.
Ms Whitmore said leadership from all politicians was needed.
Speaking on RTÉ’s Today with Claire Byrne Fianna Fáil Councillor for Tipperary Michael Smith said the town needed to rebuild after recent events.
"The scenes on Monday do not represent the majority of people in Roscrea," he said.
"Our town has to work to recover. We have to work on the ground that has been lost, to try to start to rebuild the image and the character of the people of Roscrea over the last few days.
"That image will be with us for a long, long time."
Speaking on the same programme, Roscrea dentist Pádraig Ó Reachtagáin said he welcomed any improvement to the infrastructure of the town.
"We have seen the deprivation of Roscrea increase over the last 30 years since I came here," he said.
"We really need something to improve matters."
Mr Ó Reachtagáin stressed that the town did not have sufficient dental or medical services to accommodate its population.
"It does not matter what colour your skin is or where you are from when you turn up at my door, we expect to be able to deliver a level of service and we cannot. And it has been getting worse and worse and worse," he said.
Number of immigrants changed demographics - Varadkar
Elsewhere, Taoiseach Leo Varadkar has said local authorities cannot have an à la carte relationship with central Government and refuse to cooperate with some departments.
His comments were in response to a question about the decision of councillors in Mayo to withdraw co-operation with the Department of Integration on housing refugees and asylum seekers in the county.
He said he disagreed with the decision, which formed a non-binding motion and he said all local authorities receive significant grants from central Government.
On the news yesterday of additional support for the ten areas in the country that have taken in the greatest number of Ukrainians and refugees, he said ministers had been asked to work on that, with a view to the proposal going to Cabinet in the first week of February.
He said one option is opening the Community Recognition Fund to new applications or making it more flexible.
Mr Varadkar said that while new arrivals were welcome, it was a simple fact that the number of immigrants had changed demographics and, in some cases, changed local economies when tourist accommodation has been taken out of use.
