Siptu has accused the Waterford Council of Trade Unions of jeopardising local job prospects by opposing the project, which earlier this month got the green light from the city council. Developers KRM Construction had planned to begin work immediately on the scheme, which will include 60 retail units, a four-star hotel and a 600-space underground car park on a 5.1 acre site at Michael Street. The developers anticipate the creation of 600 jobs during the construction stage and say 1,300 permanent positions will be created when the project is fully operational.

However, several objections, including, it is believed, one from the Waterford Council of Trade Unions, have been lodged with an Bord Pleanala.

According to the council, the development will cause "massive, continuous and ongoing problems associated with traffic, overshadowing, loss of light, noise and air pollution. There will also be a serious loss of amenity which will depreciate the value of properties in the general area."

Siptu claims the council's position has angered building workers and poses a threat to jobs in the construction sector.

"A lot of our lads have been phoning this office wanting to know what the hell is going on and how it is that at a time when there is a blip in the industry, unions are objecting to a project that could safeguard jobs for some considerable time, " says local Siptu representative, Davy Lane.

The city council two years ago refused permission for KRM's original submission before later endorsing amended proposals which involved scaling down the development.

"As far as we're concerned, the city council did its job, " says Lane. "Councillors asked for changes in the developer's first plan and they got them."

A spokesman for KRM Construction says the developers are disappointed that their amended proposals have been referred to an Bord Pleanala.

"We are, of course, disappointed. At the same time we're confident that we'll get there eventually. There is a lot of public support for this scheme."