The Minister for Transport, Martin Cullen, has denied reports that Dublin Bus does not have enough vehicles.
Mr Cullen also said he hopes to be able to move on the issue of privatising bus routes in the capital by the summer.
Mr Cullen said that his information was that Dublin Bus had enough buses and in fact had spare capacity which would be reorganised.
He said the Government would continue to fund the company, adding that over the last four years more than 500 new buses had been purchased.
Asked about the privatisation of bus routes in the capital, he said everyone agreed that opening the market would be important for Dublin.
Talks are taking place about the move and he said he hoped they would conclude before the summer. The unions are taking part in what he described as 'very positive discussions' and Mr Cullen said he hoped to be able to move on the issue by the summer.
Mr Cullen was speaking in Dundalk, where he turned the sod for the new Dundalk to Newry dual carriageway.
The proposed 14km stretch of motorway will form part of the N1 in the Republic and will link to the A1 as it crosses the border in Co Louth.
Work on the cross-border road, which is a joint endeavour between the National Roads Authority, Louth County Council and the Northern Ireland Roads Service, will cost in the region of €115 million.
It will take approximately two years to complete.