Greyhound Waste is collecting all bins in Dublin city regardless of whether customers have registered for upfront payments.

The company had publicly threatened to withdraw service from unregistered householders.

Greyhound lorries collected refuse this morning in northside areas, including Clontarf, Marino and Drumcondra.

However, warning letters have been left on unregistered bins stating that refuse will not be collected in future unless at least half of the €100 annual service charge is paid in advance.

It is believed the same policy will apply on other northside routes tomorrow.

The system of upfront payments only applies to wheelie bin customers.

Dublin City Council has pointed out that 33,000 waiver customers, 16,000 customers in council flat complexes and 20,000 bag tag customers are receiving a full service.

Of the remaining 70,000 customers, Greyhound says that 51,000 have signed up with them leaving around 18,000 households unregistered out of a total of 140,000 households in the City Council area.

Earlier in the Dáil, Fianna Fáil deputy leader Éamon Ó Cuív warned that Dublin city could become a ''cesspool'' overrun with rubbish, if the refusal by Greyhound to collect the refuse of 18,000 households is not resolved.

Mr Ó Cuív said it was not good enough for the Government to wash its hands of this matter and it could hit tourism.

He said chaos is looming in the capital due to the Labour-led Dublin City Council who were unable to organise the privatisation of waste collection.

He said with St Patrick's Day coming soon, many tourists who visit Dublin will leave calling it ''dear old dirty Dublin''.

Tánaiste Eamon Gilmore said Greyhound should exercise some flexibility regarding payments.

He said he understood that the company has made it clear that households can pay the €100 charge in two instalments.