Fare increases on Dublin Bus, possibly in the region of 10 per cent, are expected to be announced in the near future.
While the public will be not be pleased at the prospect of the increases, they are said to be essential for the future viability of the CIE companies.
The Minister for Public Enterprise, Ms O'Rourke, is proposing to grant Dublin Bus its first fares increase in nine years. She is expected to present her proposals to the Cabinet on November 2nd.
So far increases have been deferred because of the failure of the companies to conclude viability plans with their unions.
It is part of a package of reforms to make the company more viable. Meanwhile, bus drivers are expected to conclude a strike ballot in support of a 20 per cent pay claim tomorrow evening.
The proposals also allow for a new system of public service contracts, which will be linked to the cost-of-living index.
If the Cabinet approves the increase, it is likely to be introduced early in the new year, although a date has yet to be fixed. Increases on Iarnrod Eireann and Bus Eireann fares are expected to follow in the new year.
Dublin Bus is the first CIE company to conclude a viability plan and Ms O'Rourke told a trade union delegation of her intentions on Monday.
It has been welcomed by SIPTU and the National Bus and Railworkers' Union.
Senior SIPTU negotiator Mr Noel Dowling said the fares increase was needed to offset the fact that there had been no rise in the £7 million State subvention. More funds were needed to offset the cost of running 150 new "Euro" buses on Dublin's Quality Bus Corridors.
According to SIPTU, Ms O'Rourke also assured the union that Dublin Bus would be granted the first public service contract for the city when the market is liberalised. This would run for at least three years, with a further two-year extension available. Mr Dowling said the union would be pressing for similar commitments in relation to Bus Eireann and Iarnrod Eireann.
"A further positive outcome of the meeting was the Minister's promise to withhold new operating licences for private operators", Mr Dowling said.
NBRU general secretary Mr Peter Bunting also welcomed the Minister's initiative. He said it would be dangerous to award licences in the present volatile situation. Any decision on new licences should await the conclusion of consultations between the Minister, Dublin Bus and the CIE group of unions.
Last month the unions strongly criticised Ms O`Rourke's decision to grant a licence to a private operator to run a bus service from Ballsbridge to Dublin Airport, and from Mullingar to Dublin Airport.