Minister for Justice Michael McDowell has insisted he has Cabinet support to introduce cafe-style bars.
Faced with growing opposition from Fianna Fáil TDs, the Minister, through a Government spokesman, has refused to offer any sign of compromise.
"There is a united government approach on this. The Government is entirely at one on the way forward. There have been discussions about this," the spokesman said, quoting the Minister.
However, Taoiseach Bertie Ahern, speaking in Cork on Wednesday, pointedly emphasised that the Minister's policy was but a proposal at this stage.
His carefully phrased remarks were designed to buy time until this week's meeting between the Minister and Fianna Fáil TDs concerned about the issue.
The Minister will appear before the Fianna Fáil Parliamentary Party on Tuesday night rather than before a smaller gathering of the party's justice policy group on the following evening, as originally planned.
His appearance - the third during his time in the Cabinet - could have a crucial bearing on what happens next. "He is perfectly capable of coming in and looking down his nose at everybody," one Fianna Fáil TD commented last night.
More than 40 Fianna Fáil TDs have signed a motion brought by Laois-Offaly TD John Moloney opposing the cafe bars.
Recently, however, members of the parliamentary party have complained about several elements of government policy, most notably the end of the dual mandate, but they have always avoided open confrontation.
Mr Moloney's motion, if pushed to a vote, would force a retreat by the Minister, since it calls on Fianna Fáil to agree its own policy before any licensing-law changes are made.
Mr Moloney told The Irish Times he did not want a confrontation with the Minister on the latter's desire for new small bars selling drink and food.
However, he said, 40 colleagues had signed his motion "even though I did not canvass anybody for their signature.
"I have no difficulty with the PDs. I have already expressed my preference that we should run on a joint platform in the next election, so there is no evidence that I am doing this to attack Michael McDowell," he said.
Fianna Fáil and the PDs would have "a big problem" if no compromise could be found at next week's meeting, he said.
Rural Fianna Fáil TDs have faced strong lobbying from vintners concerned about a dramatic influx of new liquor licences.
"You could have chippers applying for such licences. The number of places selling drinks would rocket. It doesn't make sense," said one Fianna Fáil backbencher.
