Transport Minister Paschal Donohoe continues to rule out any intervention involving government money in the dispute between Luas operator Transdev and tram drivers.

"I will not be using, and cannot use taxpayers money to facilitate a resolution," he said, speaking to Shane Coleman on the Sunday Show.

The disagreement has heightened in recent days, with Transdev announcing plans to hire buses to transport passengers during a strike scheduled for St Patrick's Day - a move the National Bus and Rail Union branded "Thatcherite." 

The union said it would protest the use of scab labour to the Minister, but Donohoe explicitly ruled out a government-brokered solution. This would leave the state open to legal challenges taken by other firms who bid for the Luas tender.

"Going down that path... will undermine the ability of any government to negotiate with other groups to deliver public services," he added.

Speaking of the use of buses, he said he hoped they were simply a contingency plan, and would not need to be used on the day.

Regarding ongoing political talks to form the next government, Donohoe said Fine Gael are open to engaging with parties "who are willing to be responsible regarding the direction our country can go in."

He also stressed the need for a sturdy arrangement to be hammered out - one that can not only provide a policy programme, but that has the ability to implement it.

"I ask those people who were not convinced by the case [Fine Gael] made to have a look at what happened in the Dáil on Thursday." What would happen if the inability of the Dáil to function translated to government, he asked?

"All parties have a responsibility to engage with how they believe their politics could form part of a new administration," he added.

However, he does not believed a Grand Coalition with Fianna Fáil will be agreed, saying he has "always been very skeptical of it."

Donohoe also stated Ireland has been well served by the established political arrangement: