The Minister of State, Mr Robert Molloy, was warned there would be "considerable legal difficulties" and "financial costs" when he blocked the development of 26 houses at Shaw Park, Carlow.
The warning was given by the Carlow County Manager, Mr Matthew O'Connor, on October 28th, six weeks before Mr Molloy reversed his position and gave the go-ahead for the building of 16 co-operative houses and 10 local authority houses last Friday.
Mr Molloy lifted his block on the development following Fine Gael allegations he was engaged in a "pals' act". The chairman of the Progressive Democrats, Senator Jim Gibbons, whose home is adjacent to the development, had objected to the schemes.
In a letter to the housing construction section of the Department of the Environment - released by the Carlow Fine Gael TD, Mr John Browne, during last night's Dail debate - Mr O'Connor said: "In a situation where the 10 Co-Op houses have to proceed because of the legal realities which exist, the exclusion of the local authority element will leave a very unsatisfactory development situation prevailing in Shaw Park.
"Perhaps the Minister might further consider the matter in the wider view of the content of this letter, and my own recommendation is that the local authority scheme should, in all the circumstances, be allowed to proceed," Mr O'Connor added.
He was responding to a departmental letter, received on August 18th, expressing the Minister's concern about the construction of the two housing schemes.
A second letter from the housing construction section of the Department, dated June 9th last, said there were no objections to the proposals submitted.
