The Government last night insisted it would go ahead with the Forum on Europe in the wake of yesterday's refusal by Fine Gael to accept a compromise formula put forward by the Taoiseach, Mr Ahern.
In a revised proposal to Fine Gael, the Taoiseach suggested the forum should spend its first three months debating the implications of the European Union's enlargement, and issue a report if necessary.
In addition, it should offer ideas about the arrangements for the EU's next inter-governmental conference, due in 2004. The final agenda for the IGC will be drawn up at the last Belgian EU Presidency Summit in Laeken in December.
Mr Ahern suggested the forum should "broaden its focus" in the new year "to consider the future of Europe debate itself and Ireland's overall relationship with the EU".
The concessions, however, did not go far enough for Fine Gael leader Mr Michael Noonan. "The problem is that Bertie Ahern still wants a post-Nice talking shop when he never got us past Nice. continues to pursue a pointless consensus-making forum about the future of Europe without fixing the problem he and his Government created in its botched handling of the Nice referendum."
In a letter last evening to the Taoiseach, Mr Noonan said: "We see little value in participating in what would essentially be a talking shop at a time when the pace of developments in Europe required the Government to take decisions." He fears the forum will "drag on endlessly" and be used as an excuse by the Government to avoid facing questions in the Dail and Seanad on its attitude towards major EU issues.
However, he held out hope of further concessions. "I have known the Taoiseach for a long time," he said. "He deals incrementally with problems. It would be in character for him to reply once more with some alterations."
But Mr Ahern gave little grounds to believe he is prepared to offer more. "The intention remains to proceed, in the national interest, with the forum as a focus for a necessary public debate on issues of profound importance. Fine Gael should be part of this initiative. I regret that they have decided to stand aside from this vital debate."
A Government spokesman accused Mr Noonan of trying to force the rejected Nice Treaty past the electorate unchanged. "Everybody else is telling us that that is what we should not do."
The Taoiseach wants the forum, with 32 full members and 24 alternate members, to begin its work on September 20th in Dublin Castle, before hearing submissions from interested parties. The Opposition would have a majority as 10 full members would come from Fianna Fail and three from the Progressive Democrats.
Fine Gael would have seven full places, Labour five and the Greens two. Sinn Fein would be allocated one place, while the Independent TDs and senators would share four places.
Mr Noonan's stance holds considerable political risk, as the Labour Party has already said it is prepared to take part - even though it has some serious misgivings about the way the Government is proceeding.
The Government is also bound by an agreement made among EU leaders at the Gothenburg summit in July to hold a national debate on the future of Europe in some form.
The Taoiseach will now try to get the Dail's smaller parties to agree to the forum's construction.