The Minister for Public Enterprise, Ms O'Rourke, told the Dail three weeks ago she had been in "regular contact" with the management and unions of Dublin Bus in advance of the recent one-day bus strike.
However, a spokesman for Ms O'Rourke said last night that this did not constitute "interference" by the Minister in the matter.
On RTE Radio yesterday, Ms O'Rourke denied she ever interfered in industrial relations matters with the company. She said she "never interfered in the last few months" in the company despite the fact the Dail and "everybody" was pushing her to do so.
However, when she was questioned by the Opposition in the Dail on February 15th, the day of the bus strike, Ms O'Rourke said: "I have been in regular contact with the management and unions in Dublin Bus to ascertain if a basis can be found for negotiations that will lead to an early satisfactory resolution of this dispute."
The Minister added: "I will continue those contacts and urge the parties to enter into urgent negotiations without preconditions on either side or the threat of industrial action."
Later during the debate, Ms O'Rourke said: "I will continue the contacts I had last week and this week and urge the parties to the dispute to enter negotiations urgently, without preconditions on either side."
In the Dail yesterday afternoon, Ms O'Rourke denied intervening in the recent Dublin Bus dispute.
"While I naturally kept in contact with the parties to brief myself on developments. I took great care to allow the State's industrial relations machinery get on with the job."
In his letter of resignation, the CIE chairman, Mr Brian Joyce, accused the Government of failing to withdraw from involvement in industrial relations at the group. He said this was a "recipe for conflict" with the trade unions.
He said: "Sub-strata involvement in industrial relations matters by third parties [other than the Labour Relations Commission and the Labour Court] completely undermines the management in the respective companies and leaves then defenceless against any form of industrial action.
"The confusion caused by such intervention is a recipe for continuous conflict and incremental demand from the trade unions. The National Bus and Railworkers union claim in Dublin Bus is a case in point."
A spokesman for the Minister said last night that as the representative of the major shareholder in the industrial dispute she had to keep informed about events.