AN Bord Pleanala has cleared the way for a second shopping centre to be developed in Athlone. One of the main beneficiaries of the decision will be property developer Owen O'Callaghan, who is also involved with the planned Quarryvale shopping centre in west Dublin.

A Ministerial Order providing urban renewal tax breaks for the £20 million Athlone centre was made by the last Fianna Fail government a day before it ended its term of office. Local traders later objected to the granting of planning permission for the 150,000-square-foot complex, which will have four anchor tenants and 40 shop units.

The decision by An Bord Pleanala will also come as a disappointment to Duke House Properties, which recently paid £8 million for three shopping centres, including a 21-year-old centre in Athlone, which was originally developed by Monarch Properties. Duke House is expected to embark on a major upgrading of the centre before the rival complex opens.

Some Athlone traders strenuously opposed the rezoning of the five acres for the centre on the grounds that, contrary to the objectives of the urban renewal legislation, the use of the tax breaks in this instance will damage the traditional shopping areas of the town. The promoters of the new centre have claimed that there is an annual "leakage" of £40 million in consumer spending to Galway, Mullingar, Tullamore and other neighbouring towns.