Bus workers today called off a work stoppage after Minister for Transport Martin Cullen agreed to increase the size of the Dublin Bus and Bus Éireann fleets.
The National Bus and Rail Union (NBRU) had planned to hold a meeting tomorrow evening resulting in the cancellation of national and provincial bus services from 7pm.
The stoppage was in protest at the Government failure to invest in new buses. However, following a meeting with Mr Cullen today, NBRU acting general secretary Michael Faherty, told ireland.comthe Minister had made a commitment to purchase 100 new buses for Dublin bus and 160 for Bus Éireann.
A number of the buses for Bus Éireann will replace existing vehicles.
These commitments are somewhat less than those requested by the companies. In January, Dublin Bus had sought 200 new buses while Bus Éireann was asking for another 170
According to Mr Faherty, the Minister also denied there was a split between the coalition partners on providing resources for the bus companies.
"Mr Cullen said he was confident he will get Cabinet approval for the extra buses," Mr Faherty said.
In a statement the NBRU said it regretted it has been "necessary to threaten action in order to concentrate minds and secure commitments that the Government will implement its own transport policy."
"If the Minister delivers on his commitments it will represent a major step forward for the travelling public, as well as our members", it added.
Mr Cullen also promised that consultation would take place over the proposed Dublin Transport Authority, the NBRU said.
A statement from Siptu after the meeting said the Minister also addressed union concerns over the proposed Dublin Transport Authority. Mr Cullen told the unions that a report on the Authority would be circulated within days and consultation on the plan would follow.
Fine Gael poured cold water on Mr Cullen's committment describing it as the "latest in a long line of hollow promises".
The party's transport spokeswoman Olivia Mitchell said: "There is no new proposal here for new buses, either on the Cabinet table or apparently between the Government parties.
"This issue has been discussed at Cabinet recently and there was an ideological logjam between Fianna Fáil and the PDs that blocked any new buses.
"Has that logjam now been cleared? I am very doubtful that it has. Indeed, CIÉ has confirmed to Fine Gael that it has received no notification that funding will be made available for new vehicles for Dublin Bus or Bus Éireann."
The Progressive Democrats's transport spokesman Senator Tom Morrissey said the Government should stick to its "pro-passenger stance and get on with reforming the bus market in the interests of the consumer".
"We are not anti-union but we are very much pro-passenger and taxpayer. We want one bus route in four in Dublin to be opened up to competition initially.
"The unions at Dublin Bus appear to want to operate an apartheid system under which they can ostracise the private sector, which currently brings thousands of passengers into the city every day at no cost to the taxpayer."
Senator Morrissey said the PDs wanted to see the franchise of 25 per cent of Dublin Bus routes.
The Dublin Chamber of Commerce said the latest threat of a bus stoppage strengthened the argument for competition in the sector.
"The absence of any form of competition in the Dublin Bus market is one of the main reasons why the Dublin Bus unions can hold Dublin commuters to ransom in this manner," said chief executive Gina Quin.
"It is scandalous that the number of buses in the capital's bus fleet has not increased over the last four years," she said. "However, what we need is Government action - not a return to the dark days of transport unions holding the city to ransom."