The blood transfusion service has indefinitely banned blood donations from people who lived in Britain for more than five years between 1980-86.
It is in response to a possible risk of transmitting CJD, the human form of BSE.
The ban is expected to be extended to people who resided in Britain for more than one year, which will wipe out 12% of the country's blood supply.
Fine Gael spokesman on health Gay Mitchell TD called for a Health Ombudsman office to be set up in the wake of the announcement.
"The IBTS is taking welcome steps both in terms of organisation and public relations to bring the public with them.
"It would help their cause if the office of Health Ombudsman was created so that the IBTS and all health services would be subject to independent oversight," he said.