Community leaders and politicians united yesterday in condemnation of An Bord Pleanála's rejection of retail development plans that would have brought 500 jobs to Donegal town.
The €35 million retail project with Dunnes Stores as anchor tenant was planned for a site less than 500m from the town centre.
However the board, in turning down permission for the project, claimed the proposed shops would not be "within comfortable walking distance" of the town centre and would create traffic congestion.
The decision stunned community leaders, even as they were still celebrating the prospect of 1,000 new jobs after Donegal County Council earlier this week gave the green light to another €100 million development of shops, offices and leisure facilities on the other side of town.
The decisions on both projects came after almost six years of bickering between supporters of rival developers, with objections, delays and appeals.
Minister for Agriculture Mary Coughlan, said: "I was clearly of the view that we would have had two developments simultaneously in Donegal Town." She said the rejection of permission for the Dunnes Stores site, which Westmeath-based Bennett Construction wanted to develop, was made on the basis that it wasn't close enough.
"My personal view is it is as close to Donegal town as you are going to get."
But she insisted neither she nor any other politician could influence the board, which was established to remove control of planning decisions from politicians.
Donegal Community Chamber president Ernan McGettigan claimed the Minister was effectively saying an independent body based in Dublin had more power on planning in Donegal than the county council.
Earlier, a local electoral area meeting of councillors voted unanimously to send a protest to An Bord Pleanála.
Several councillors pointed out that "edge-of-town" developments had been allowed in Letterkenny and Sligo.