While a final decision will not be made by the cabinet until the autumn, sources are predicting the government will not repeat its decision of two years ago when it was one of just three EU states to fully open its labour market to citizens of the 10 accession states.

The issue of how to treat Romanian and Bulgarian workers from 1 January next is currently being discussed with the social partners. Enterprise, Trade and Employment minister Micheal Martin is due to bring a recommendation to cabinet in September. The government can opt to grant access to Romanians and Bulgarians straight away or defer doing so up to 2011.

It is understood the feeling within government is that, while the country continues to require migrant workers to sustain the economy, those needs are probably adequately met by the 10 states which joined the EU in 2004. "We've allowed workers from the 10 and it's worked so far, but the feeling is now that we should take a few years to bed it down, " one source said.

There is frustration within government, articulated by Taoiseach Bertie Ahern last Monday, over the failure of other EU states to follow Ireland's lead and open up its labour markets to workers from those 10 countries.

And with France, Germany and Italy opting to retain restrictions on the existing 10 new members, there is a reluctance in government to unilaterally open up the Irish labour market even further.

The controversy caused by the Irish Ferries stand-off and allegations in some quarters of displacement of Irish workers is adding to that reluctance.

While ministers believe there is little or no evidence of job displacement, there is concern that a perception might take hold that Irish workers are losing out.

Aoife Collins of the Immigrant Council of Ireland this weekend said the Irish government had courageously taken the lead on opening up to the 10 accession states and it should do the same with Romania and Bulgaria. Consideration should also be given to citizens from those countries already living here, she added.