Dan Neville, Fine Gael's spokesman on mental health and an acknowledged expert on suicide issues, said the recession would lead to increased demand for psychiatric services.
Mr Neville said international research shows that suicide rates increase during economic depression.
There is a higher level of depression and suicide among the unemployed, and the pressures caused by financial difficulties was identified as a major cause of suicide even prior to the Wall Street crash of 1929.
Research since the 19th Century shows that suicide rates are affected by economic conditions, he said.
"The information coming from some sections of the HSE is that a 10 per cent cut in budget to the mental health service is required," said Mr Neville.
"This would have disastrous effects for those who suffer and will suffer from mental ill health. It would be a death sentence for many. This must not happen," Mr Neville said.
He said that the Government must anticipate the effect of the changes caused by the economic downturn and respond to the inevitable increased need for psychiatric services.
"It must also put in place suicide-prevention programmes to minimise the outcome from the downturn. Not to do so is ignoring a crucial need brought on by the serious mistakes which have caused this disastrous economic situation," he added.
Dr John Connolly, of the Irish Association of Suicidology, said that despite the shrinking public finances, it was vital the Government invests more in suicide prevention and mental health services to reduce the number of deaths.
"We must be aware of the facts that research reaching back to that of Emile Durkhiem in the 1890s shows that, in times of recession, suicide rates inevitably increase," Dr Connolly told an Oireachtas subcommittee.
"Unfortunately, this will happen in Ireland in the coming months and years unless we ensure that funding for the implementation of the national suicide prevention strategy and other services is guaranteed."
Official figures show that at least 460 people took their own lives last year but many experts suggest the real figure could be as high as 600.
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(Source: II)