Efforts to agree a major tax break package to spur the €2 billion redevelopment of Cork City's docklands in time for inclusion in today's Finance Bill have failed.
However, talks are still ongoing between officials in the Department of Finance in an attempt to create a package that encourages developers but still abides by EU tax incentive rules.
Minister for Finance Brian Cowen last night met members of the group driving the regeneration project, just hours before the Finance Bill is launched this afternoon.
The European Commission has already agreed that regional aid rules, which are being phased out in mid-2008, can be extended as a special case for the Cork docklands until 2013.
However, the tax breaks cannot be given for the construction of houses and apartments alone on the 166-hectare, privately-owned lands but would also have to cover infrastructure.
Minister for Enterprise, Trade and Employment Micheál Martin has come under local pressure to secure tax breaks, which could delay the regeneration of the area, if not scupper it.
Last December, Mr Martin rejected Opposition criticism about the lack of the tax package in Mr Cowen's budget by saying that such moves "never happen in a budget".
Then, he said: "You can take it that it is the Finance Act that the Department of Finance will be responding to in terms of the submissions that are being made, but a number of meetings will be held between obviously the [ Cork Docklands Development] forum and the department."
The regeneration of the docklands was identified as one of the key aims for the city in the National Development Plan, though it noted "the need for priority investment in roads, water services, port relocation and associated infrastructure" .
Over the next 20 years, it is hoped that 22,000 people will live in 6,000 apartments and houses, while 27,000 people could work daily in the rejuvenated lands, along with recreation space and schools and colleges.
Due to existing flooding problems, however, the whole area will need to be raised. In addition, a number of disused oil factories in the area have polluted land that needs to be cleaned before building can take place.
The majority of the docklands is held by five developers - Owen O'Callaghan, Jerry Wycherley, IAWS, McCarthy Properties and Howard Holdings.
A development forum, chaired by former UCC chief, Prof Gerry Wrixon, was set by the Government in the wake of complaints that the project was proceeding too slowly.
The development forum aims to produce a report by June to accelerate development.
Cork city manager Joe Gavin recently said three planning applications will be lodged in the next year, including a €1 billion deal from Howard Holdings to develop 30 acres on the old Ford factory lands near Páirc Uí Chaoimh.