The exact cost of setting up and running the Dublin mayor's office is not yet known, John Gormley has said.
Speaking in the Dáil, the Minister for the Environment, Heritage & Local Government said any costs incurred by the establishment of the new office will be outweighed by its benefits.
The Minister was responding to questions from Fine Gael's Phil Hogan in the Dáil.
Mr Hogan said the cost would be passed on to businesses and consumers and that the new post should be postponed until the 2014 local elections.
Under legislation currently being drafted, the new mayor will have legal powers over the four local councils in the areas of planning, housing and waste management.
Meanwhile, Green Party TD Paul Gogarty today launched an information website and a survey asking Dubliners what they wanted from a directly elected mayor.
The TD has expressed an interest in being his party's candidate.
Mr Gogarty admitted there had been opposition from within Fianna Fáil and other parties, however he said the mayor's powers will only be strengthened during the legislative process.
He also said that existing local authority managers had administrative positions and would work with the new mayor who would have political powers.
Mr Gogarty said the election was taking place one year later than planned by Minister Gormley because of the complexity of the legislation.
