AN extra State subvention to resolve CIE's financial problems has been firmly rolled out by the Minister for Transport, Energy and Communications.

"The idea the Exchequer could provide additional subvention of £40 to £50 million every year on an indefinite basis is both utterly unrealistic and completely undesirable," said Mr Dukes.

"If CIE is to become competitive, it must reduce its costs. More State funds now to subsidise operational inefficiencies or restrictive work practices would simply postpone the necessary cost reductions and at a considerable waste of scarce taxpayers' money."

Mr Dukes was speaking during a debate, which was held over two nights, on a Fianna Fail private member's motion which expressed concern at the threat of an all out strike in CIE, called for a white paper on the semi state sector and criticised Mr Dukes for failing to take a hands on approach to the crisis.

The motion was defeated by the Government last night by 70 votes to 60.

The Fianna Fail spokesman on transport, Mr Seamus Brennan, accused CIE management of adopting a "gung ho" approach, adding that the position it had adopted was unprecedented and turned back the clock on the principles of social partnership.

"For the last year, CIE management appear to be on a deliberate collision course with the company's workers. A confrontational approach has been adopted and management appear to want an end result of a big bang dispute.

"Management will get what they want unless the Minister and the Government finally pay some attention to the time bomb that is ticking away and will finally explode on the public in a wide scale dispute."

It was scandalous, said Mr Brennan, that Mr Dukes and a Government made up of parties claiming to be left of centre turned a blind eye to all that was going on at CIE.

Mr Dukes said that CIE held Mr Brennan in the same esteem as the people of Drogheda held Cromwell. CIE workers remembered well Mr Brennan's initiatives on school transport and the Nitelink services, when he had attempted to prevent the company competing in those areas.

All governments, he added, had taken a "hands off" approach in dealing with commercial issues in State bodies and even more so in dealing with industrial relations matters within them.

"There are institutions and machinery of state for dealing with industrial relations problems in all companies, including State bodies. It has been the tradition of successive governments to encourage employees in all companies to avail of this machinery to solve industrial relations problems. I intend to keep to that tradition."

Mr Eric Byrne (DL, Dublin South Central) said a cost effective public transport system was an economic and social necessity. It was reasonable to expect the taxpayer to subsidise public transport if it was efficient, but it was not. The bus service in urban areas was a "hit and miss affair" and did nothing to entice drivers out of their cars. "Up to now it seems that strategic planning in CIE has focused largely on changes in work practices with little reference to the customer."

In modern industrial relations the way to increase productivity was to allow workers to retain" their current gross earnings while introducing changes which would, permit them to work more flexibly.

Mr Sean Ryan (Lab, Dublin North) said this and future governments should redouble their efforts to influence European transport policy away from untrammelled competition so that jobs would be preserved and a good service provided. The ultimate beneficiaries would be the physical environment and the quality of people's lives.

Mr Sean Kenny (Lab, Dublin North East) said the Fianna Fail motion was "opportunistic in its timing, motivated by cynicism, and is calculated to stir up industrial relations in the CIE group of companies". Negotiations were ongoing to see how the issues could be addressed through established mechanisms.

He called for a review of the current tax incentives to provide short term parking spaces in multi storey car parks. "We need to look at the whole area of company parking spaces perhaps treating them as benefit in kind would discourage people from bringing their cars to work."

Mr Trevor Sargent (Greens, Dublin North) said it was bad economics to be encouraging the import of cars while neglecting public transport. The Government should change its attitude and become "a hands on custodian of public transport".

The Progressive Democrats spokesman on transport, Mr Robert Molloy, criticised the very severe demands which restructuring plans put on CIE employees. It was unrealistic to ask workers to take wage cuts of 30-40 per cent.