The Taoiseach has often wondered why Iarnr≤d ╔ireann does not sell some of its land, he told the Dβil.

Mr Ahern, stressing that was a matter for the board of the company, pointed out that its land was a problem in relation to the issue about rail freight traffic.

Proposals by Iarnr≤d ╔ireann to cut its freight operations arose originally because of the development of its site at Spencer Dock, he told the House. The docks location used by the company is to be developed in February and "it will have to relocate. That is the reason this issue has arisen."

The Labour Party leader, Mr Ruair∅ Quinn, who raised the matter, said the company was not short of land. "That is the problem," Mr Ahern replied. "It does have a lot of land. I often wonder why it does not sell some of it, but that is a matter for the board of the company. The issue arises because it wants to use the site in Spencer Dock for other purposes."

Mr Quinn had asked whether Iarnr≤d ╔ireann had made a decision to "transfer approximately 46 per cent of its freight traffic from rail to road".

"Only 10 per cent of our freight is transported by rail while the rest is transported on the worst road infrastructure in Europe," he said.

If the decision went ahead it would put an extra 5 per cent on to an already overburdened infrastructure.

Mr Ahern said the company was aware that the Minister for Public Enterprise, Ms O'Rourke, did not support the company "pulling out of rail freight or substantially reducing its contribution in this area".

Among other reasons "it would add more heavy traffic to the streets, as most of this work occurs at its Spencer Dock site".