The Tánaiste says she wants all positions on state boards to be filled by public advertisements in future.
Joan Burton's comments come as tensoins emerge within Labour about how Fine Gael appointed an election candidate to a state board, just days before he applied for a seat in the Seanad.
The issue was raised in both the Dáil and Seanad today - but Fine Gael ministers are playing down any allegations of wrongdoing.
Meanwhile, Today FM understands that Mr McNulty himself has been ordered not to comment on the issue by Fine Gael headquarters.
Our political correspondent Gavan Reilly filed this report for Today FM's National Lunchtime News: