The blunder was the result of a dispute over new contracts under the government-run Assisted School Travel Program.

Service operators claimed a change in the rates they were paid by the government would make some runs uneconomical and many refused to send vehicles to pick up the children until the issue was resolved.

State opposition leader John Robertson attacked Mr Piccoli for failing to act earlier, saying the minister had been alerted to the problem a week before the students returned to school and should be sacked over the incident.

But Mr Piccoli defended himself, saying he sought to solve the dispute immediately.

"Look, it's been a complete stuff-up (changes to the travel program)," Mr Piccoli said.

"The department thought it would work and it hasn't worked for every student. There's about 9300 it's worked for and 700 it hasn't.

"The moment I knew it was a problem, I got straight onto it.

"But, yes, the department has made a mistake and the fact it affects the most vulnerable children makes it worse."

Mr Piccoli was not fazed that Mr Robertson had called for his head.

"That's the standard response from any opposition and I probably did it myself in opposition," he said.

But the Labor Party may not be Mr Piccoli's only challenger - Premier Barry O'Farrell agreed last week his senior minister would be "in the eye of the storm" during an inquiry into the bungle.

Former director-general of education, Dr Ken Boston, has been placed in charge of the inquiry.

He will investigate the reasons behind the gaffe, whether the stranding of so many vulnerable young people could have been prevented, and how a repeat of the situation can be avoided in future.

Mr O'Farrell said action would be taken when investigations were complete and "no one would be beyond that action".

Dr Boston will submit his report to the director-general of the Department of Premier and Cabinet before February 10.