The Minister for Public Enterprise, Ms O'Rourke, has called on both sides in the Dublin Bus dispute to drop any preconditions to talks and seek an urgent resolution to the issue which would avoid any further disruption to commuters.

Speaking during private notice questions on the dispute in the Dail yesterday, she said she had been in regular contact with both management and unions in Dublin Bus to see if a basis could be found for negotiations which would lead to an early and satisfactory resolution.

"I will be continuing those contacts and I will be urging the parties to the dispute to enter into urgent negotiations, without preconditions or the threat of industrial action and with the interests of customers foremost in their minds."

Ms O'Rourke said she was aware of some union concerns with the third party report on the issue recommended by the Labour Court. However, she said, it should be possible to use the report as an agenda for the negotiations.

Mr Emmet Stagg (Labour) said the Minister was merely "pussyfooting around the edges of this dispute". He asked would she not "do what she has often done before and intervene directly with the management and tell them to sit down around the table with the unions, who are prepared to talk, to try and resolve this strike before it escalates any further".

Ms O'Rourke said she had spoken to the parties over the weekend and on Monday. As for intervening directly, she said there were established institutions which dealt with labour disputes and they were the bodies "to whom we look and indeed get the leadership needed in matters such as this".

Ms Olivia Mitchell (Fine Gael) asked the Minister whether she agreed that lack of competition and the low level of subsidy were partly to blame for the dispute. She said until these two issues were resolved "we would never have a comprehensive bus service".

Ms O'Rourke said the Government subvention had increased fourfold in four years from €3.75 million in 1996 to €13.4 million last year. On competition, she said the Government had commissioned a study to review the 1932 Act governing the sector and this would be brought before Cabinet before the end of the month.

Ms O'Rourke expressed her "sincere regret" to all bus users who were inconvenienced by yesterday's strike. "I would also like to thank the gardai and the Office of the Director of Traffic for their efforts to keep traffic flowing, and road users for their patience".

Asked whether the Army should be drafted in as part of a contingency plan to help commuters affected by a further strike, Ms O'Rourke said the option had not been considered.