Tánaiste Mary Harney has described as "incredible" the approach being adopted by Fine Gael leader Enda Kenny to a string of claims over nursing home charges that could cost the taxpayer billions.
"It is incredible for anyone in politics to suggest that we simply give people what they ask for and not contest these cases," she said.
A Fine Gael spokesman said, however, Ms Harney was on very thin ice where nursing homes were concerned because she had tried to bring in legislation to make illegal fees legal.
He added that she had failed over the past year to bring in a scheme for the repayment of fees deducted and to set up an inspectorate for nursing homes.
In the Dáil last week Mr Kenny accused Ms Harney of adopting "a dishonest defence" in relation to a High Court claim for damages by a family whose late mother was charged fees in a public nursing home.
The Irish Times has learned that the case raised by Mr Kenny involves the relatives of a deceased pensioner in Co Cork who are seeking substantial damages on top of the reimbursement of €9,708 in charges illegally deducted from the woman's pension to cover the cost of her care.
The family is seeking exemplary damages of at least €38,000 on top of the money illegally deducted. When High Court legal costs are taken into account the case would expose the taxpayer to a potential liability in the region of €100,000.
A total of 80 such cases have now been lodged in the High Court from the southern region alone. Nationally, 207 cases have been lodged with the High Court and Circuit Court.
In response to a query about the Cork case, Ms Harney said she found it incredible that anyone in politics should propose that the State should not fight High Court cases as strongly as possible. "It is incredible that anyone in politics should suggest that the State throw in the towel when people look for damages."
Ms Harney emphasised that compensation would be paid to people who were entitled to it. "We are going to pay back the money people are owed index linked to inflation."
However, she added: "We are certainly not going to be paying damages, and we will defend what is, after all, taxpayers' money."
The Fine Gael spokesman said just because a set of lawyers advise that a line of defence is reasonable that does not make that defence honest.
Up to 20,000 people who are alive and the estates of a further 40,000 to 50,000 former residents of publicly-funded, long-stay accommodation will benefit from the repayment scheme.
The Government has estimated that the cost of the repayment scheme will be about €1 billion.
If all of the claimants sought and were awarded damages on the scale of the case raised by Mr Kenny the ultimate bill would be between €5 billion and €10 billion.
Ms Harney plans to repay the charges have been delayed as a result of demands by external companies for fees of between €30 million and €50 million for processing claims.
The Health Service Executive (HSE) has scrapped a competition for a company to design and manage the repayment scheme because of the level of fees being sought. It has readvertised for companies to work on the scheme.
The Opposition parties have said there is no reason why outside consultants should be hired to process the claims.
