Dublin City Council is to cease paying €1,700 a week to a private security firm to look after a car park at the centre of a dispute with businessman Noel O'Gara.

The council, which was leasing the land from the HSE, had hired the security officers to stop the Athlone businessman, who claims he owns the car park in Terenure village, from seeking charges from customers.

However, it has now told the HSE that it intends to vacate the site.

According to correspondence from the HSE, which has a health centre next to the land, the executive made a range of offers to the council which were refused.

"We have had extensive discussions in relation to the future operation of the car park. We had endeavoured to enter into a formal arrangement with DCC [Dublin City Council] in relation to the site and offered terms on which they could continue to operate the car park on the site. DCC declined the terms on offer and advised us that they intended to vacate the site."

The HSE is now putting out a tender for new management of the site. It said it has no legal concerns about O'Gara.

"We have sent our documentation relating to title to the relevant solicitors and to date nothing has been received that contradicts our position as owners of the site."

O'Gara, who said he bought the title to the site 10 years ago from the estate of Sir Robert Shaw, last month tried to charge motorists €1 for three hours' parking and put up signs covering the pay and display ticket machines.

He also became mired in controversy four years ago when he claimed ownership of Dartmouth Square in Ranelagh. He tried to run a tile showroom and car park on the land, but the square has since returned to public use.

Labour councillor for Dublin South Central Eric Byrne said he was concerned over the development.

"I would much prefer to see the lands being operated by the council and by the HSE rather than some other private company.

"We put a Christmas tree up there every year and now with the new company we don't know what terms and conditions they will be applying. Who knows where the situation will go from here. I am trying to ensure the services remain the same," Byrne said.

Dublin City Council is to cease paying €1,700 a week to a private security firm to look after a car park at the centre of a dispute with businessman Noel O'Gara.

The council, which was leasing the land from the HSE, had hired the security officers to stop the Athlone businessman, who claims he owns the car park in Terenure village, from seeking charges from customers.

However, it has now told the HSE that it intends to vacate the site.

According to correspondence from the HSE, which has a health centre next to the land, the executive made a range of offers to the council which were refused.

"We have had extensive discussions in relation to the future operation of the car park. We had endeavoured to enter into a formal arrangement with DCC [Dublin City Council] in relation to the site and offered terms on which they could continue to operate the car park on the site. DCC declined the terms on offer and advised us that they intended to vacate the site."

The HSE is now putting out a tender for new management of the site. It said it has no legal concerns about O'Gara.

"We have sent our documentation relating to title to the relevant solicitors and to date nothing has been received that contradicts our position as owners of the site."

O'Gara, who said he bought the title to the site 10 years ago from the estate of Sir Robert Shaw, last month tried to charge motorists €1 for three hours' parking and put up signs covering the pay and display ticket machines.

He also became mired in controversy four years ago when he claimed ownership of Dartmouth Square in Ranelagh. He tried to run a tile showroom and car park on the land, but the square has since returned to public use.

Labour councillor for Dublin South Central Eric Byrne said he was concerned over the development.

"I would much prefer to see the lands being operated by the council and by the HSE rather than some other private company.

"We put a Christmas tree up there every year and now with the new company we don't know what terms and conditions they will be applying. Who knows where the situation will go from here. I am trying to ensure the services remain the same," Byrne said.