Fine Gael has criticised the decision by the Minister for Public Enterprise to give the go-ahead for an increase in public transport fares.

"This will do nothing to induce commuters out of their cars, on to buses and trains, and runs counter to what is happening in every other capital city in Europe," said Fine Gael's public enterprise spokesman, Mr Ivan Yates.

"A fare increase at this time is not appropriate given our traffic gridlock and should only be put in place when public transport is upgraded," he added.

During a two-day debate on transport Ms O'Rourke said she would be giving a "positive response" to Dublin Bus's application for a fares increase. She said Dublin Bus had not had a general fares rise since 1991, but the cost of living had risen by 16 per cent in that time.

Democratic Left's public enterprise spokesman, Mr Eamon Gilmore, said the current Government had made a critical and fatal judgment on Luas, which could drive it underground permanently, leaving the people of Dublin strangled with traffic. He added that it was "lunacy" to increase fares, and the Government should instead increase its subvention for public transport in Dublin.

Arguing the case for investment in transport in the west, Mr Michael Ring (FG, Mayo) said "we have no DART and no Luas and no buses in the west of Ireland". He said people had to use cars to come up and down to Dublin because they were afraid to use public transport.