More than 10,600 civil and public servants have made transfer applications under the Government's decentralisation programme and 1,400 staff have been assigned to posts which will decentralise, according to Minister for Finance Brian Cowen.
Mr Cowen also rejected as "mischievous" claims by Labour TD Joe Costello (Dublin Central) that attempts are being made to change the voluntary nature of the decentralisation programme and he called on Mr Costello to withdraw some of his "outrageous allegations".
In a row over the proposed move of the State agency Fás to Birr, Co Offaly in the Minister's constituency, Mr Costello said that just six of the 400 Fás employees wished to move to Birr but he claimed that "every employee who seeks a promotional post must first sign a contract to move to Birr, which immediately renders the transfer compulsory".
The Labour TD alleged that "a gun is being place to the head of every person who feels they can take a step up the ladder", and he also claimed that "Fás is the only State agency using promotional posts to compel people to decentralise".
The Minister, however, insisted that decentralisation was a voluntary programme. "From the outset, guarantees have been given by the Government that all employees not wishing to transfer out of Dublin will be facilitated with an alternative post in Dublin if the situation arises. Promotions policy must take account of the reality of decentralisation."
Mr Costello raised the issue in an adjournment debate attended by both Mr Cowen and his constituency colleague Minister of State Tom Parlon, who also has responsibility for decentralisation.
The Labour TD said "enforced decentralisation" was "more akin to a form of dictatorship if people have a gun to their heads in terms of whether they will decentralise."
The Minister acknowledged that progress with State agencies had not been as quick as with the Civil Service. It was a new experience for State agency employees to move to other activities if they wished to remain in Dublin.
Mr Cowen said discussions had been held between Fás and employees through the Labour Relations Commission and while differences remained, he strongly supported "using all the established consultation and dialogue mechanisms."