Up to 350 new full-time and part-time jobs could be created in Co Laois in the coming months with the opening of a new retail village in the county.

Work on a new £42 million (€53 million) designer shopping outlet in Rathdowney, Co Laois, was formally initiated by the Taoiseach, Mr Ahern, yesterday.

The outlet village will open in September, according to Morrison Outlets, the UK-based group behind the scheme. Covering 100,000 sq ft, the outlet will comprise up to 40 outlets specialising in providing brand names at discounted prices.

It will also include restaurants, play areas for children and car parking for more than 600 cars. Details of the individual designer names which will operate outlets in the village were not available.

But Mr Tony Eckford, managing director for development in AWG, parent company of Morrison, said they would include top-brand names.

"A substantial proportion of the village has been let or options have been taken.

"They include a good blend of names, household names and quality names," he said.

Cheaper infrastructure and leasing costs significantly lower than in capital cities, combined with a blend of out-of-season, excess and new stock, will allow brand names to be sold at discounts of between 30 per cent and 70 per cent, he said.

Managing director of Morrison Outlets Mr Dominic Browne cited ease of access, the proximity of the N7 and N8 routes and the fact that it is just 70 miles from Dublin as the primary reasons for locating in Rathdowney.

"The location was very important to us," said Mr Browne. "There are over two million people living within the catchment of our new outlet."

While local retailers have expressed concern over the new development, Ms Margaret Ryan, director of Portlaoise Chamber of Commerce, said she feels the new village and existing retailers can live side by side.