Labour TD Willie Penrose has said that some in Fine Gael need to "wake up" to the reality of bankruptcy and Ireland's mortgage crisis.
Relations are said to be strained over the junior Coalition party's plans to reduce the bankruptcy term further.
Fine Gael ministers reportedly have concerns that it could backfire and lead to an increase in the number of repossessions.
However, Deputy Willie Penrose has said that it is a red-line issue.
"Somebody, whether deliberately or not, appears to be saying: 'Ah well, this wouldn't actually make a contribution to the mortgage distress, or certainly anything of significance, and therefore it's not a priority'," he said.
"This seems to be emanating from someone in Fine Gael circles.
"But Fine Gael wants to wake up if that's their attitude."
Taoiseach Enda Kenny would not be drawn on Willie Penrose's comments as he arrived at this morning's Cabinet meeting.
He said the Government will address the matter within the next few weeks.
“We’ve already said that we would bring in a number of measures dealing with mortgage distress, and that’s the Government’s intention,” he said.