Privatising Bus Éireann and axing unprofitable routes has been ruled out by Minister for Transport Shane Ross.

He said there was no question of talking about privatisation when he briefed the Cabinet on the difficulties facing the company on Tuesday.

Mr Ross is understood to have told his colleagues Bus Éireann was facing insolvency within two years unless difficult decisions were made.

“I share the view that public transport is, obviously, the main channel, and a very important channel, to getting people out of their cars to free up the roads and improve the environment,’’ the Minister added.

Inaccurate

Mr Ross said while he had briefed the Cabinet on various routes, it was inaccurate to say he had referred to cutting six to eight unprofitable routes.

Certain routes, and what should be done with them, had to be looked at, he added. “I do not believe I am talking in terms of axing routes,’’ he added.

Mr Ross said he would not comment on the detail of any proposals the company might put to trade unions to address the “serious challenges’’ facing the company.

“As shareholder, however, I do have a view that Bus Éireann’s serious financial challenges should be tackled decisively and effectively so that the company can be viable and serve its customer base on a sustainable basis,’’ he added.

He said he understood the Labour Court had decided not to issue a recommendation on a trade union pay claim in respect of the company on the basis Bus Éireann was completing a reorganisation plan due at the end of January.

Sinn Féin spokeswoman for transport Imelda Munster said public transport was not always profit making. It was a hugely important public service, she added.

Earlier, Fianna Fáil spokesman for transport Robert Troy said it appeared Mr Ross had "woken up and smelt the coffee'', if media reports were to be believed.

“He finally realises the severe issues facing Bus Éireann and he brought them to Cabinet yesterday,’’ he added.

Mr Ross said it was a pity Mr Troy had not been at an Oireachtas committee earlier to make the same points, nor was his substitute there.

Agreement

“So don’t talk to me about waking up and smelling the coffee,’’ Mr Ross added. “It looks to me as if you did not wake up yourself at all this morning.’’

The Minister said he had been clear, since assuming office, issues relating to pay and conditions in a State-owned company under his department’s aegis were a matter for discussion and agreement between the employer and employee.

He said he was aware the company was considering options designed to address its significant losses which resulted from its commercial expressway service.

The formulation and progression of those plans were a matter for Bus Éireann, he added. The company had engaged consultants to independently review the options available to it as it sought to address the losses.

The company had also expressed its desire to discuss the Expressway issue with the trade unions, said Mr Ross.

“I am firmly of the view that difficult issues like this can only be resolved through open, constructive and realistic engagement between the company and its employees,’’ he added.