The Taoiseach, Mr Ahern, today spoke of the "very real concern" in Government about the increased level of subsidies to CIÉ.
In a clear indication that the Government was not for turning in its plans to break up the company, Mr Ahern told the ICTU conference in Tralee: "We need to change the way public transport is organised and managed in order to increase efficiency and give value to customers."
Unions have threatened a series of work-stoppages and industrial action over Government plans break up the State transport group and open certain bus routes up to competition.
However, Mr Ahern told delegates: "I am quite sure that the CIE unions do not expect the travelling public and the taxpayer to subsidise inefficiency.
"The Government has no desire for conflict with the trade unions," he said.
"I have no intention of pursuing a policy which would erode the wages and conditions of public transport employees in some sort of race to the bottom to reduce operating costs," he said.
"There is no reason why a more efficient Dublin Bus would not win any franchising competition."
The focus should be on service and cost, he said.
Mr Ahern also defended the proposal for a second independent terminal at Dublin Airport.
"There are clear and obvious pressures on capacity. They have to be faced up to and the investments that are necessary have to be funded," he added.
