Twomey confirmed he made the remark in a meeting with Panda Waste director John Dunne prior to Dublin's current consultation process to change its waste plan. Twomey said the preferred option was a tender process: "competition for the market, not competition within the market".

After insisting there was no inconsistency in the city council's dual role in the market as player and referee, Twomey denied that his remark unfairly prejudiced the process. "You can't start out unless you have some idea of where you want to go, " Twomey said by way of explanation, insisting permits would only be revoked if operators were shown to be out of compliance with regulations. "Having said that, the process is entirely open and transparent."

Private waste collection companies Greenstar and Panda are preparing for a battle against Dublin City council at the Competition Authority and in the courts over possible moves to restrict their business.

Twomey denied allegations from private operators that his real agenda was to engineer a monopoly on waste in Dublin in order to improve the economics of the council's controversial proposal to build a 600,000-ton incinerator in Ringsend.

But Greenstar boss Steve Cowman dismissed the denial:

"I think his credibility is compromised. . . there is this major project that he's signed which requires they guarantee the waste stream. What's the best way to guarantee the waste stream? To abuse your power to create a monopoly situation and kick out the private operators and stop them coming in. It's ludicrous."

Industry sources claim that amount of waste heading for incineration would require a truck coming in or out of the incinerator every four minutes, and draw waste from as far as Limerick and Cork if recycling rates continue to improve apace.

An Bord Pleanala is expected to rule this month on the incinerator's planning application.