The Taoiseach has said he understands the public concern about a possible salary of €430,000 for the head of the new Housing Activation Office.
However, Micheál Martin said the Government has not yet reached a decision on the salary for Brendan McDonagh, who will head up the new office.
He said the office would be a strategic one to focus exclusively on moving roadblocks that are preventing the delivery of homes.
The Cabinet will consider proposals on this matter tomorrow with Mr McDonagh set to be given a "hands on" role to get "things moving around large housing projects."
Earlier this month, the Taoiseach said the appointment was aimed at speeding up the delivery of housing and that the objective was to have someone in place by the end of the month.
Social Democrats TD Rory Hearne has written to Minister for Housing James Browne to express concern over the proposed appointment of Brendan McDonagh as the Government's new housing tsar.
Mr Hearne said he had reminded the Minister that Mr McDonagh's main role in NAMA was overseeing the fire sale of assets and this resulted in the eviction of thousands of people into homelessness through its receivers arranging vacant possession for the sale of rental properties.
"How is it appropriate that an individual who played a key role in adding to the housing crisis is now to be given responsibility for fixing it," Mr Hearne asked.
"In addition, at a time when the Government is postponing the introduction of a living wage, it is outrageous that it should create a gold-plated position with a salary package worth almost €500,000," he said.
Meanwhile Independent Ireland TD Ken O'Flynn said the appointment of the former CEO of NAMA to the role amounts to nothing more than a deflection from a far more urgent debate on the main barriers to housing delivery.
The TD for Cork North-Central also fears the Housing Activation Office will have an an over-emphasis on foreign investment and vulture funds in the Irish housing market.
