Minister for Transport Martin Cullen has appealed for private sector operators interested in rail freight services to come forward.
Mr Cullen, who described the issue as "deeply frustrating", said the market for international freight services would be opened next year and domestic freight in 2007. This may encourage some people in the private sector who said they would operate trains, to come forth, he added.
Mr Cullen was responding to Fine Gael's transport spokeswoman Olivia Mitchell who said it was "almost incredible in this day and age when we are so conscious of rising oil prices, the large number of deaths on our roads, growing traffic congestion and the increased cost of building roads, that we are closing down all our rail freight services". She said it was clear Iarnród Éireann wanted to get out of the business.
Ms Mitchell said it was "extremely short-sighted to allow Iarnród Éireann divest itself of infrastructure such as freight wagons, rolling stock, freight yards and depots. It might be reminiscent of the situation regarding the Harcourt Street line as in 10 years it may be critical to the country."
Mr Cullen said he agreed with the deputy and stressed that "we made a large investment in the rail infrastructure, and there is no question of decommissioning it".
"The problem we will face is whether it is a good idea that the taxpayer should subvent freight movement throughout the country," said Mr Cullen.