The Taoiseach Brian Cowen has expressed his full confidence in Ms Coughlan following her comments that many of the reports made in the McCarthy report did not make sense.
Mr Cowen insisted that Ms Coughlan¿s comments did not constitute a wide-ranging criticism of the group which recommended some €5.4 billion in public spending cuts but were confined to one particular recommendation on the closure of rural garda stations.
He described the controversy that has erupted following her remarks as a ¿manufactured story¿.
Mr Cowen described her as an ¿excellent minister, hard-working and a very good member of Cabinet¿. He dismissed the contention that her position has become untenable.
The Taoiseach, who was visiting the National Ploughing Championships in Co Kildare today, was responding to conflicting remarks made by Ms Coughlan and the Minister for Finance Brian Lenihan about the McCarthy report.
Ms Couglan had told the Dáil yesterday that there were many recommendations in the McCarthy report that did not make sense. She emphasised that she was referring to `many¿ recommendations.
However, the Minister for Finance Brian Lenihan quickly responded by saying that the McCarty report remained key to the budgetary process.
Today, the Taoiseach denied that the Government was in disarray: ¿I think this is a manufactured story to be honest. There is no serious difference of opinion in relation to what the overall budgetary stance is. There is a lot of political discussion at Cabinet about the details of how we proceed,¿ he said.
He also asserted that the Tánaiste¿s comments were confined to one aspect of the report (dealing with the closure of 350 garda stations) and were not a more general criticism of the report.
Ms Coughlan was the third minister to criticise the McCarthy report, following strong comments by Minister for Arts, Sports and Tourism Martin Cullen and Minister for Rural, Community, and Gaeltacht, Affairs, Eamon O Cuiv. The McCarthy report recommended the abolition of both their departments.
When pressed on his interpretations of Ms Coughlan¿s reference to ¿many recommendations¿, Mr Cowen insisted that her remarks were directed at the specific recommendation that rural garda stations be closed.
Asked if he had full confidence in her, he replied: ¿Yes I do. I don¿t see on what basis her position would be untenable. She¿s an excellent minister, hard-working and a very good member of Cabinet and will continue to be so.¿
During his visit, Mr Cowen tried out one of the competition tractors and ploughed a small stretch of land. He was also heckled by No to Liston campaigners as he made his way through the main enclosure. He told reporters that a Yes vote in Lisbon was vital for the future of agribusiness in Ireland.
He accepted that farming has had a bad year because of the weather and falling prices. He said that the Government would do its best to assist the sector but pointed out that the economic circumstances were very challenging.