RTE is facing calls to publish the legal advice it received before paying out money and apologising to the Iona Institute.

The State broadcaster handed over €85,000 following comments made on 'The Saturday Night Show' on the back of comments by Rory O'Neill, also known as drag act 'Panti'.

Their decision has sparked hundreds of complaints and the Oireachtas Communications Committee is to write to RTE management, asking them to explain their approach to dealing with legal complaints.

It is understood that the Committee will consider a response by RTE before deciding whether to seek a full hearing with senior RTE managers.

Senior executives, including the Director-General Noel Curran, are due before the Committee for a pre-scheduled meeting in the coming weeks.

Yesterday, the Managing-Director of RTE Television - Glen Killane - defended the station payout and apology to the Iona Institute.

Glen Killane said the broadcaster had fallen foul of Irish defamation law

In a letter to RTE staff, Mr. Killane said legal advice was sought and all avenues were explored, including an offer to make a donation to a neutral charity. He said the broadcaster explored every option available to it, including right of reply.

"However, based on the facts of what was broadcast, and having regard for broadcasting compliance issues, the seriousness of the legal complaints, and the decision by the complainants not to accept RTE's proposed remedies, we decided that a settlement was the most prudent course of action" he added.

He said that the broadcaster had not engaged in censorship, but had fallen foul of Irish defamation laws.

Labour TD for Dublin North-West John Lyons is demanding an opportunity to speak about the issue in the Dail. He told Newstalk Breakfast it is too important to be ignored.