Brian Lenihan has said that a new law, giving more rights to foster parents, is currently being drafted.
The legislation will mean that foster parents can apply for guardianship rights after five years.
Lenihan, the Junior Minister with responsibility for Children, says this new legislation will allow key decisions to be made by foster parents, without recourse to the health board.
He said that the current situation only serves to isolate foster parents as a group in society, for example when they are unable to obtain a passport to bring their foster children on holiday.