DUBLIN City Council is coming under increasing political pressure to cease its dealings with Veolia, the French operator of the Luas rail system, due to its involvement in illegal Israeli settlements on the West Bank.

Motions for a cessation of the relationship – which are to be presented to numerous councils in the coming weeks – have already been adopted in Galway and Sligo.

Veolia has been accused of providing a rail infrastructure and waste dump facilities to service the controversial settlements.

A motion by Cllr Joan Collins at the forthcoming meeting of Dublin City Council is set to point out that the company is contracted "to build a light railway system linking Israel to illegal settlements in occupied East Jerusalem".

Veolia has said that its projects in the West Bank are widely supported by Palestinians and only aim to bring development to the region to benefit the entire community.

It is not the first time its involvement with Israel has sparked controversy. In 2006 it emerged that Israeli employees had visited Ireland for training purposes. According to the Ireland Palestine Solidarity Campaign (IPSC), the move was halted due to trade union protests. The company said the cancellation was simply down to operational reasons.

Human rights watchdogs claim Veolia's current involvement in the West Bank is in breach of international law.

According to advocates, the company leased the land from Israel and not the Palestinian authorities. Israel's occupation of the West Bank is deemed illegal.

A statement from the company insisted it did not support illegal settlements and that it was aware of international laws, in particular UN resolutions, dealing with the situation. Although still committed to the light rail project, it said this would continue to depend on "any final international or French legal decision expressing the illegality of the operation".