The Minister for Transport, Mr Brennan, has warned Iarnród Éireann "radical surgery" would by used by the Government if rail services are not improved over the next two years.
The "radical surgery" in question, Mr Brennan said, could include the introduction of competition into a market which has, to date, been monopolised by Iarnród Éireann.
"The Irish taxpayer has invested very heavily in track improvement," Mr Brennan said. "With further investment in rolling stock we expect the company to deliver," he added.
"It they don't, customers will go elsewhere and we the Government will have to use more radical measures to ensure efficiency."
Mr Brennan was speaking at the announcement this morning of a special allocation of €40 million to the company for the purchase of new trains. A new timetable for all major routes was also unveiled.