The Progressive Democrats and Fianna Fáil remain deadlocked over reform of the bus market despite commitments to trade unions yesterday by Minister for Transport Martin Cullen to fund an extra 360 buses for the State bus companies.
In a successful attempt to avert a national bus stoppage, Mr Cullen yesterday told the unions that he would bring proposals to Cabinet in the coming weeks to provide 100 additional buses for Dublin Bus and 160 for Bus Éireann at a cost of more than €70 million to the State.
However, the PDs are opposed to this unless Mr Cullen brings in a major bus reform package, including the privatisation of a quarter of existing routes.
Mr Cullen wants to ring-fence all existing Dublin Bus routes from privatisation in an attempt to keep the unions on side for other reforms.
The PDs refused to be drawn yesterday on divisions within the Government, but a spokesman confirmed that the party had not agreed to any additional funding for new buses.
"No formal proposals have been brought to Cabinet at this stage," he said. "We expect specific proposals on reform of the bus market to be brought to Cabinet in the coming weeks, and the Cabinet will look at all the issues raised, including the funding of new buses."
The party's transport spokesman, Senator Tom Morrissey, also issued a strongly-worded statement, accusing unions of wanting to "operate an apartheid system under which they can ostracise the private sector".
It is the second time Mr Cullen and the PDs have clashed over transport policy. Last year, Mr Cullen resisted PD pressure to have a privately-operated second terminal at Dublin Airport.
The disagreement over bus reform between Fianna Fáil and the PDs has already led to delays in setting up a new Dublin Transport Authority, which would take over regulation of buses in the capital.
It has also led to a chronic shortage of buses on some routes in Dublin, with a number of new bus lanes having remained empty or under-used for the past 12 months.
Mr Cullen has already drawn up plans - they have the support of unions - which would see 15 per cent of new routes in the Greater Dublin Area set aside for private operators while at the same time providing State funding for 200 additional buses for Dublin Bus and a further 160 for Bus Éireann. All existing routes would be ring-fenced for Dublin Bus.
The PDs are pushing for the privatisation of a quarter of all existing routes in the State and for open competition for any new routes.
Meanwhile, Michael Faherty, acting general secretary of the National Bus and Rail Union (NBRU), said that the union had accepted Mr Cullen's assurances on extra buses. But he warned that industrial action was likely if the Minister failed to keep his promises. "If he does not deliver, our members will be ready to take to the streets again, as they have so often in the past to champion the cause of public transport."