SIPTU's railway branch secretary, Mr Tony Tobin, said the company's managing director, Mr Joe Meagher, had recently advised union officials that proposals to reduce costs would be brought to the board of Iarnród Éireann.
Iarnród Éireann workers are to meet in Wexford today amid concerns about the possible downgrading of rail services in the south-east region.
The company, he said, faced a budget deficit of €25 million this year, and this would rise to €50.6 million in 2005.
Mr Tobin said he believed the cost-cutting proposals included the closure of railway lines between Gorey and Rosslare Harbour, Waterford and Rosslare Harbour, and Limerick Junction and Waterford, as well as the line from Manulla Junction to Ballina. In addition, the company was considering withdrawing from freight carrying, he said.
"I requested the managing director to confirm or deny this. He would only say he would be bringing proposals to the board to bring about a reduction in costs."
Mr Tobin said cost-cutting proposals were discussed at an Iarnród Éireann board meeting last Wednesday but no firm decision was made. The board decided to discuss its financial difficulties with the Minister for Transport, Mr Brennan.
Politicians in the south-east have been invited to attend today's meeting. Labour Party deputy leader Mr Brendan Howlin said any downgrading of lines in the region would be resisted. Fine Gael's transport spokesperson, Mr Denis Naughten, called on the Minister to rescind cutbacks.
A spokeswoman for Iarnród Éireann last night denied the company had plans to close lines: "We are not recommending that any lines be closed. I honestly don't know where this has come from."