A new Mayoral task force has been set up in Galway to try to resolve the continuing problems surrounding the re-development of Eyre Square.

The move comes after the decision of the main contractor to abandon the project earlier this week.

Seven of the city's leading businessmen are to join the team which will try to minimise the damage being caused to business and tourism as a result of this latest setback to the highly controversial €6.5 million scheme.

Mayor Brian Walsh said the members of the task force would use their business expertise and no-nonsense approach to try to find solutions to the complex problems which had arisen in relation to the refurbishment of the square.

Galway City Council has already brought in a firm of outside contractors to begin work on reopening some of the streets around the square. The work is expected to be completed in three weeks.

It is also involved in negotiations to try to find a way of completing the main redevelopment work in the square. It says it is now likely that that may not be completed until early next year.