The Government has been examining funds available for the potential buying of the former hotel.
The Social Democrats are describing the decision from government to agree in principle to buy a hotel in Roscrea for community use as "completely illogical."
The coalition is examining if funds could be used to buy the former Grant's Hotel, following protests outside the Racket Hall Hotel over the past few days, which is due to accommodate asylum seeking families.
Social Democrats TD Jennifer Whitmore is decribing the decision as a "pathetic attempt to quell local opposition."
She says there has been "u-turn after U-turn" in terms of accommodating asylum seekers in certain areas:
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