A Fine Gael Minister has sharply criticised her colleague Minister for Housing Eoghan Murphy TD over regeneration plans for her area.

Catherine Byrne, Minister of State for Health Promotion, spoke out against the country’s first large-scale development of cost rental housing.

She was speaking at plans for the long awaited regeneration of St Michael’s estate in Inchicore.

A new proposal would see the construction of 472 housing units, with 330 cost-rental and the remainder social housing.

Minister Murphy, speaking at a public meeting, said cost-rental provided people with rents 15-25% below market value.

The units will be built on public land with low cost loans from the European Investment Bank and renters will only have to pay towards the costs of construction.

They will be available for those on low to middle income, for example couples earning below €75,000 a year.

It will be open to people who live or work in the area, which is close to St James's Hospital and the new children’s hospital.

The city council will retain ownership of the units.

However, Ms Byrne said 70% cost-rental would not build a sustainable community.

She said affordable housing was needed instead, which would allow local young people to get on the property ladder.

She also complained about lack of consultation and the high-density of the plan.

However, other local TDs and councillors, members of Sinn Féin and People Before Profit, came out in favour of the cost rental model.

The scheme has to be passed by city councillors in September before construction can start next year.

We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences

Meanwhile, St Patrick's Athletic FC, who had put forward an alternative proposal for the site, has issued a statement saying it was "very disappointed" with today's announcement.

The club said it represents a huge missed opportunity for the community of Inchicore and the wider area.

The League of Ireland club proposed development of a 'Richmond Arena' as part of a project that would include new houses, community facilities, a shopping complex and an underground car park.

The club believed this plan would be a "game changer" that would provide regeneration, employment and vastly improved retail and community facilities in the area.

However, it said, it was pleased that there would be a public consultation process, which it will engage fully with in the hope that the proposal can be expanded to deliver a better result for the community.

It said: "While our preferred option remains the development of an arena as part of the redevelopment of St Michael's Estate, we will also engage with the council in relation to this commitment."