Rural development and community groups were urged by the Minister for Public Enterprise, Ms O'Rourke, to spend the £3.5 million the National Development Plan had given them on pilot rural transport schemes.
She was speaking at the launch of the "Rural Transport" report. According to Erin Cotter, who has been studying the problem of rural transport for a number of years, there were heartbreaking cases of people being marginalised by it.
She said she was aware of a case where a pensioner had to pay £20 a week on taxi fares to collect the pension. This could in no way be seen as equitable.
The Minister said she had already started on the work of finding more flexible solutions to providing transport to people who badly needed it.
"As you probably know, there is a major review of the Road Transport Act 1932 and I expect that this could be ready for the autumn or early next year."
She referred to the Transport Act 1932 Act which gives CIE a monopoly on public transport routes and which is seen by many as a barrier against the development of private sector transport schemes.
She said that people in rural Ireland had the right to the same kind of social access as people living in towns and this was a matter of equality.