Dublin city traders could seek financial compensation through the courts if Dublin City Council proceeds with its plans to introduce a so called 'bus gate' on College Green.

In a letter to the council last week, the Dublin City Business Association (DCBA) is understood to have claimed that the information presented to the council in support of the measure is "inaccurate and misleading".

It also revealed that the bus gate had been referred to An Bord Pleanála for a ruling on whether it requires an Environmental Impact Study. As a result, it warned that any decision to proceed with the gate in the absence of a decision from the board could be illegal.

In its correspondence with the council, the DCBA is also understood to have stated that it has been instructed by a "significant portion" of its membership that they will have no option but to seek damages from those responsible for introducing the gate.

It is likely that any such claim would centre around the potential loss of earnings to the association's members.

Overall, the association is calling for councillors to reject the proposed bus gate until "proper and correct" information is put before them.

A 24-hour public-transport-only route from Dame Street to Westmoreland Street had been proposed under the original plans for the bus gate put forward by the council's traffic department

However, last month its transport committee voted to make the area a car-free zone only at peak hours on week days, following lobbying from city business interests.