Local traders are convinced Dunnes Stores is the most likely tenant for a mixed retail superstore planned by developer Taelos Ltd at a 3.2hectare former factory site a mile from the town on the Crossmolina Road. The proposed development will comprise a retail warehouse unit measuring 3,789sq m, a 929sq m garden centre and a mixed retail superstore covering 4,400sq m. The site is currently zoned for industrial or commercial use. A material contravention of the local development plan would be required to rezone the land for retail use before the proposed scheme could proceed.

Because objections have so far thwarted earlier plans by Dunnes to redevelop their existing town centre premises, business people regard the Irish multiple as the most likely tenant for the proposed new retail unit.

"While there's no hard evidence that Dunnes are planning to move, several business people have expressed concerns to me that that might be the case, " says councillor Willie Nolan. "The fact is that if they were to pull out it would create a very obvious vacuum in the town. The evidence is there, both on the continent and in Ireland too, that when major stores move to out-of-town sites they attract custom away from traditional retail locations.

"I know councillors are prepared to bend over backwards to facilitate Dunnes redeveloping their existing store, even to the point of making the public car park next door available to them to expand their business.

There's plenty of scope for negotiations with the planners on this. Both sides should sit down and discuss the various options."

According to Nolan, local people are anxious to point out they are not opposing new development in the town. "We have one of the biggest Penneys stores in Ireland . . . a fine three-storey building on Pearse Street . . . that's been trading well for a year now. So the precedent is there for extensive town centre redevelopment."

Meanwhile Tesco's proposed move to new premises on the site of the town's old sports grounds, off Lord Edward Street, have not generated the same level of public concern.

"We have no problem with that, " Nolan says. "In fairness, they're a bit hemmed in at the Market Square store. And the new shop will be within a hen's kick of the town centre anyway."

Ballina town council's director of services, Seamus Granahan says he cannot comment on either the Teolis application or Tesco's proposed move. "What I can say in general is that in meetings that I have had with Tesco over the years to consider its interest in developing a large retail store I have been consistent in telling them that we are not interested in developing large retail stores out of town. The development plan is quite clear in relation to the zoning for different types of development."