Ireland will not agree to the mandatory opening of domestic rail to privatisation “under any circumstances”, Minister for Transport Paschal Donohoe has said.

Mr Donohoe told Sinn Féin transport spokesman Dessie Ellis that Ireland and a number of other European Union countries have “fundamental concerns” about the proposed EU reforms to open the market to privatisation.

The Minister said he had met the Commissioner in Brussels a fortnight ago “and pointed to the difficulties posed to the Irish rail sector and indicated that Ireland could not agree to mandatory opening under any circumstances”.

Mr Donohoe said: “I believe we will find a solution that will not pose risks to the Irish rail sector.” Mr Ellis believed, however, it was still “very likely that we will see a further drive towards privatisation because that seems to be the direction in which the EU is moving”.

Public funding

He welcomed the decision to maintain public funding at 2014 levels but said “that is still a cutback because of inflation and other issues”. The Minister said he secured an additional €45 million for Irish Rail last year and €38 million extra this year on top of the estimates.

Mr Ellis said the Minister should write off Irish Rail’s €150 million losses in the past seven years and “we should not place demands on the rail network to meet its debts”.