Opposition demands for an emergency debate on the position of the Minister of State for Agriculture, Mr Ned O'Keeffe, were rejected by the Government.

Mr O'Keeffe was defended by the Minister for Education, Dr Woods, who was taking the Order of Business in the absence of the Taoiseach, Mr Ahern. The Minister of State had complied with the law, he said.

The Fine Gael leader, Mr John Bruton, said: "It is with the greatest regret I say the position of Mr O'Keeffe has caused serious problems in the promotion of food safety. I am referring to the gap between his public statements as a Minister of State and the difficulties which have apparently been encountered in a facility in which he has an interest in living up to the standards."

He asked Dr Woods if he was satisfied that Mr O'Keeffe's position was not causing difficulty for the State in promoting food abroad.

The Labour deputy leader, Mr Brendan Howlin, asked: "Will the Minister, on behalf of the Government, deal with the validity of the scheme of licensing meat-and-bonemeal, when the person charged under an order of the Government with administering it, Mr O'Keeffe, had an undisclosed financial interest in it?"

Mr Trevor Sargent (Green Party, Dublin North) said the Minister should account for members of the Government who were not able to live up to the standards they wished others to live by. Dr Woods said the Minister of State had declared his interest in the register of Dail members' interests.

"It is openly declared and it is, therefore, ludicrous to suggest he has not made his position clear. The application for the licence, which was mentioned, began in 1996 and was approved in principle by the previous government.

"It was subsequently sent out in September 1997. The Minister of State has made it quite clear that he stayed completely separate from the application, that he did not have any direct responsibility for it and did not in any way influence it.

"Up to now, it has been legal to use meat-and-bonemeal for feeding of non-ruminants. The Minister for Agriculture, Food and Rural Development took a further temporary precautionary measure yesterday. Deputy O'Keeffe's position is clearcut."

Mr Bruton said that in Mr O'Keeffe's interest, and that of the State, it should be recognised that he was miscast in his present role and could not do the job that needed to be done in the national interest. The Fine Gael spokesman on agriculture, Mr Alan Dukes, said: "His credibility is totally gone."

Mr Howlin asked if it was proper for the Minister of State to have an undisclosed vested interest. "I am advised, as a matter of administrative law, without any ethics Act, that every decision made by him while he holds that responsibility is now subject to challenge. Can we at least have an assurance from the Minister that the matter is being investigated?"

Dr Woods said Mr O'Keeffe had explained clearly the declaration of his interests and it was on the record. "He has complied with the law. That is clear, and I cannot say any more."