The comments came as the government announced increased aid to be filtered through government channels in countries like Ethiopia and Uganda.

O'Shea has strongly criticised filtering aid money through government structures in countries where accusations of widespread corruption and human rights abuses persist. He has called on the Irish government to cease all aid contributions to certain governments, specifically those of Ethiopia and Uganda.

However, speaking to the Sunday Tribune, Lenihan said that aid must continue to be filtered through local government structures in order to reach the poor.

"Is he [O'Shea] advocating stopping building schools and hospitals and punishing really poor people because their governments are misbehaving?" asked Lenihan. "I will debate this matter with Mr O'Shea any time, any place. It is not possible to run this amount of money through NGOs. We have to run it through government structures, no matter how weak."

O'Shea has made repeated calls for the Irish government to sever all ties with governments involved in corruption and abuses, arguing that all money should be filtered through aid agencies. He has accused the Irish government of "propping up corrupt and brutal regimes", such as those that exist in Ethiopia and Uganda.

"This is a moral question, " said O'Shea.

"While other governments withdrew a total of 400m from the Ethiopian government, the Irish government kept its head down and refused to do so. It is not morally right to be routing taxpayers' money through these governments."

Lenihan praised the work carried out by Goal in the developing world, describing O'Shea's concerns as "reasonable but misplaced". The minister said that up to 85% of Irish government aid was filtered through government structures, but he said this money reaches intended targets.

The Department of Foreign Affairs last week announced an increase of 130m in overseas aid, bringing Irish government aid contribution to 813m. The government has committed to increasing overseas aid contributions to 0.6% of GNP by 2010 and 0.7% by 2012.

It has also increased the emergency intervention fund from 60m to 90m, while a 20m government donation to the UN's Central Emergency Response Fund (CERF) is set to be announced in New York next month. The Sunday Tribune understands the government will sign up to a five-year commitment with the CERF, resulting in a total contribution of 100m.