CIE group would cease to exist in its present form under a radical plan to separate its bus and train companies which is being considered by the Minister for Public Enterprise, Ms O'Rourke.
The plan would see the establishment of Dublin Bus, Bus Eireann and Iarnrod Eireann as independent entities. CIE would exist only as a holding company with responsibility for the management of workers' pensions and related matters.
While the two bus firms and Iarnrod Eireann currently function as subsidiaries of CIE, the plan would see the group ceasing to hold ownership and ultimate control of the companies, their infrastructure and properties.
In a separate development, both the Department of Public Enterprise and the British-based bus company First Bus denied a newspaper report which suggested they were in discussions to introduce an independent urban bus service in Dublin.
On the proposal to separate the three CIE companies from the core group, Ms O'Rourke signalled last weekend that she viewed this as "the key to unlocking gridlock".
Given the commitment of some £2.3 billion to public transport in the National Development Plan, it is understood that the Government is keen to strengthen the management of the three CIE companies.
Whereas CIE group has traditionally dispersed its State subsidy among the companies, it is understood that new structures under consideration would see each autonomous company secure its subsidy individually.
It is still unclear how the integrated functions of the CIE group - which include its international tours and commuter advertising network businesses and its management of legal affairs - would operate in the new scenario.
CIE's group chief executive, Mr Michael McDonnell, last night declined to comment on the proposals.
In a statement last week to the Joint Oireachtas Committee on Public Enterprise and Transport, Mr McDonnell argued that the CIE group be given "a proper transition period" to prepare for any new legislation involving "fundamental change" in its role.
