The Welsh Lib Dems leader has said she will stay on after Sir Ed Davey hinted she should resign over her handling of a sexual abuse case while working for the Church of England.
Sir Ed said he had spoken to Jane Dodds and been “really clear to her about what I think she should do”.
Ms Dodds however said she had the confidence of the Welsh Board and would “continue fighting for the people of Wales” as leader.
The report was from 2021 but has come the fore after after the resignation of the Archbishop of Canterbury Justin Welby over his handling of abuse by John Smyth, a barrister associated with the Church of England.
“I think this whole issue around the Church of England is hugely serious, and we have to take it seriously,” Lib Dem leader Sir Ed told the BBC’s Sunday With Laura Kuenssberg.
“I welcome the resignation of the archbishop. I’ve spoken to Jane about this.
“She has apologised, and she has had an incredible career looking after children, but I’ve made it clear I think she needs to think about her responsibility on this.”
Sir Ed said he thought Ms Dodds needed to “reflect on this very carefully”.
He added: “I’ve made my feelings really clear to her about what I think she should do and I think she’s reflecting and I hope she does.”
Ms Dodds worked as a child protection social worker for 27 years and was elected Welsh Lib Dem leader in 2017.
Ms Dodds committed a “grave error of judgement” by not holding a meeting to discuss an allegation against Hubert Victor Whitsey, the former Bishop of Chester, the report found.
An independent report into the Church’s handling of the allegations concluded that Whitsey sexually abused a large number of children and young people as well as vulnerable adults.
Ms Dodds said she had “made child protection my life’s work” and accepted the shortcomings outlined in the report.
“I accepted at the time that there were shortcomings in organising meetings about this case. In the report I acknowledged these shortcomings and I whole-heartedly apologise to the victims for the delays that this contributed to.”
She said that after a phone conversation with Sir Ed, she had spoken to local party colleagues and met with the Welsh Board, who expressed confidence in her leadership.
“Following these conversations, and discussions with other colleagues across the party, I have decided to continue fighting for the people of Wales in my role as leader of the Welsh Liberal Democrats,” said Ms Dodds.
Tim Sly, president of the Welsh Liberal Democrats, said the board met with Ms Dodds on Saturday.
“Following this discussion, the Board expressed its complete confidence in Jane Dodds as Leader of the Welsh Liberal Democrats, and considers the matter closed,” he said.
A Welsh Conservatives spokesperson said: “Clearly she has lost the confidence of the UK Lib Dem leader.
“Fundamentally, the question Jane Dodds needs to ask herself is if her actions caused people harm or put them in harm’s way.
“If on reflection that answer is yes, then she knows what action she has to take next.”
Mr Welby said on Tuesday that his own decision to step down – which came after days of pressure following the report’s publication – was in the best interests of the Church.
The independent Makin Review concluded that Smyth, who is thought to be the most prolific abuser associated with the Church, might have been brought to justice had the archbishop formally alerted authorities in 2013.
