The Minister for Public Enterprise Ms O'Rourke has made £3.5 million available to pilot transport projects in rural parts of the country.
The new scheme, Rural Transport Initiative (RTI), is aimed at the development of transport services in isolated parts of the country by community-based groups who have projects that require funding.
RTI follows the publication of the White Paper on Rural Development which underlined the importance of transport in rural communities.
Speaking at the launch of the scheme, Ms Mary O'Rourke said the initiative would target areas wherethere was a recongnised lack of access to facilities because of the lack of public or private transport.
"Under the rural transport initiative, funding will be provided for a number of pilot transport projects in rural areas," she said.
"The primary objectives of the initiatives are to promote and support the development of innovative, community based public transport projects in rural areas and ton use the experience of these projects in the development of rural public transport policy."