Fianna Fáil is calling for a total reform of direct provision.
The party's spokesperson for foreign affairs is welcoming a recommendation to relax the rules on asylum seekers' right to work.
It is among the Department of Public Expenditure and Reform's spending review of the 39 centres.
The review shows spending is set to reach €120m this year on direct-provision and related accommodation.
The report is also proposing more State-owned direct provision centres as the number of applicants continues to rise.
The party's spokesperson for foreign affairs Niall Collins said the state needs to radically reform the entire system.
"We see the latest available data shows us that almost 30% of the population in direct provision centres are children.
"Almost two-thirds of the children in direct provision are aged under 12.
"They're mixing with adults, and they're mixing with different ethnic cultures and it's far from satisfactory."
