IT'S easy to miss Pallas Contemporary Projects (PCP), Dublin's newest contemporary art gallery. Down a Stoneybatter side-street, with a rusty metal door, bare concrete wall and nothing to declare its existence except for a small paper sign sellotaped to the entrance, the gallery is something of a hidden presence.

But its opening last week signals a major new departure for the Dublin art scene in general, and for two young artists in particular.

Mark Cullen and Brian Duggan began working together 11 years ago under the 'Pallas' umbrella.

Not only did they run Pallas Studios, but they organised exhibitions and, for the past three years, had a gallery space in Sean Tracey House near Connolly Station - a semi-derelict council flat complex awaiting demolition.

During this time, they built up a reputation for showcasing innovative, challenging art, nurturing the talents of emerging artists, and fostering a sense of community within the Dublin art world. But alongside this, they have also been battling against the building boom.

Indeed, the history of Pallas reflects twin trends in the Irish art scene: while our economic success has led to an increasingly dynamic environment and created more opportunities for artists than ever before, property development and rising costs are squeezing out independently-run studios and non-commercial galleries.

Cullen and Duggan are constantly fighting to find (and then keep) spaces. Their latest venture, PCP, signals a new beginning - albeit one that was forced upon them, having been evicted from their studios on Foley Street last year and with the council flats about to face the wrecking ball.

They secured studio space in the Stoneybatter building last year, and were then able to convince the landlord to rent the ground floor to them too. This space has become their new gallery. They have also signed an all-important two-year lease, enabling them to plan a year-long exhibition programme - they could never plan so far in advance before. "Your energy isn't always taken up with finding a new home - you're not always under threat, " says Duggan. And unlike the poky council flats, this gallery has been custom-designed. "It was an old milking parlour originally, just a concrete husk, so we renovated the whole space, " says Cullen.

They are keen to expand their remit with the new exhibition programme, which will focus on three strands: giving a platform to emerging Irish artists; inviting independent curators to develop their own exhibitions; and fostering links with international artists and organisations.

The first exhibition, 'Reverse Psychology' by Eilis McDonald, reflects their interest in supporting promising young artists. Having graduated from NCAD in 2005 with a first-class honours degree, she featured in a number of group shows before being invited to have her first solo show at PCP. "Artists at that stage of their career just wouldn't get the opportunity in Dublin to take on a full gallery, " says Duggan.

McDonald has created an intriguing installation that cleverly plays with the exhibition space. She has made a tunnel out of secondhand, sewn together sheets that begins at the entrance. "You can't actually see the gallery, which is interesting for the first show!"

Cullen laughs. The visitor must crawl through the tunnel to reach a cave-like space in which you discover a multimedia installation that integrates fluorescent lights, smileys, a warped version of the Beverly Hills 90210 theme tune and a tape reciting a cheesy motivational mantra. This onslaught of sounds and visuals is a perplexing experience, skewing the familiar and playing with perceptions. "The viewer's experience is important - how the piece makes you feel and the experience you have to go through to see the art, " the softlyspoken artist explains.

Her exhibition reflects the hands-off approach of Cullen and Duggan, who give exhibiting artists free rein to create work onsite. "It's giving them a space to try new stuff and having trust in their ability. We allow them time in the gallery itself to grow their ideas, " says Cullen, adding: "It's not a commercial gallery either so there's no dictates. We're not selecting artists because we think they'll sell; we're selecting artists because we like their work."

As a non-commercial, artist-run space, PCP is an important addition to the Dublin art scene. But considering the reputation of Pallas and their plans for the future, Cullen and Duggan were surprised to discover last week that the Arts Council, while giving them Revenue funding for their studio spaces, has turned down their application to fund PCP.

"It's self evident the amount of artists that have benefited and that will stand to benefit from Pallas, " says Cullen. "It has a significant standing within Ireland and we are bringing Irish art onto an international plane. We just don't understand it."

The Arts Council says: "We get an immense amount of requests for funding, and obviously everybody can't get funded, but we don't discuss individual cases."

'Reverse Psychology' runs at PCP, 111 Lr Grangegorman Road, Stoneybatter, D7, until 24 February.

Open 11am-7pm, Thursday to Saturday.

For more information log on to www. pallasprojects. org