Minister for Transport Paschal Donohoe has said EU proposals to open up the domestic rail network to tender are not viable in Ireland’s case.

The Government is resisting the EU Commission’s drive to open up transport networks to tender from competitors, and earlier this week said that Irish Rail could face bankruptcy if it loses the right to run the nation’s rail services.

“While I believe [the commission’s] thinking is applicable for some rail markets across Europe, ” Mr Donohoe said, “because of the small scale of the Irish rail market, because of the fact that it’s located in an island, I don’t believe that kind of approach is appropriate for the Irish rail market and I’ve made that view very clear to the European Commission. ”

Responding to recent reports that Dublin hotel prices are rising higher than ever, the minister with responsibility for tourism said he “fears” for the competitiveness of the accommodation sector if nightly rates continue to increase.

“That is a fear that I have... I have that fear because for a period of time Irish tourism did lose its way in terms of offering goods, services and accommodation,” he said.

“There is an ongoing need for hotels, for everybody involved in Irish tourism and for the Government to be vigilant to make sure we continue to maintain the competitiveness that we have gained in recent years.”

The minister wasn’t prepared to comment on the likelihood of victory for businessman Denis O’Brien’s High Court lawsuit against the Oireachtas Committee on Procedure and Privileges, but Mr Donohoe reiterated his support for the committee members and TD Catherine Murphy.

“The privileges that are made available to people who are elected to the Dáil to speak about things that matter in our country is a privilege that’s only available to people who are in the Oireachtas.”

He continued: “I believe the TD in particular who exercised that freedom did so in a responsible manner and I fully support the work that the Committee on Procedure and Privileges have done in this area and stand by the decision that they have made on it.

“While [Mr O’Brien] has concerns in relation to how that freedom has been exercised, it is my view as a member of the Oireachtas that the exercise of that freedom is of pivotal importance to how that freedom works.”

With a general election looming, members of Donohoe’s Fine Gael party have already begun making overtures towards Labour for a united front during campaigning.

He says he is “strongly for” a voter transfer pact that may see the coalition partners return to power.