Unions at Bus Éireann and Dublin Bus have accused the Minister for Transport, Mr Brennan of "provoking a row" with them over his plans to introduce competition to the public transport sector.

Appearing before the Oireachtas Joint Committee on Transport yesterday, representatives of the Irish Congress of Trade Unions (ICTU), said the Minister was not proceeding in good faith on the issue of competition.

They claimed he was acting on the basis of an "ideological whim" rather than sound policy.

In an address to the committee, Mr Liam Berney of ICTU, said Mr Brennan's plans to open a quarter of Dublin's bus services to competition by next year would amount to the establishment of a private sector monopoly.

He indicated, however, that the unions would be "happy to reconsider" plans to conduct a one-day industrial action in relation to the matter next week if a rapprochement between the two sides could be achieved.

He said the unions were not the "aggressor" on the issue.

"We are not opposed to competition but we do remain to be convinced that competition has a meaningful role to play in the sector," Mr Berney said.

It is likely that any easing in tension between Mr Brennan and the unions over the next week would be linked to efforts by the Taoiseach, Mr Ahern, to avoid industrial conflict.

Mr Ahern assured the ICTU conference last week that changes in the public transport arena could be implemented "in the spirit of partnership".

It has emerged, meanwhile, that CIÉ would not have the right to pursue the unions for recompense on the estimated €1.5 million in revenues that it would lose if July 18th's "no-fares day" were to go ahead. The company was advised that it would be liable for insurance claims on the day.