Construction has halted on Dublin's Poolbeg incinerator after the Department of the Environment failed to approve a foreshore licence.

The Department is yet to process an application lodged in December 2008 for an out-flow pipe into the sea.

Work on the €350m facility can't resume until the license is granted.

Incinerator operator Covanta are seeking a meeting with Taoiseach Brian Cowen.

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The Environment Minister John Gormley, who has said he would prefer mechanical biological treatment to deal with the waste problem than the incinerator which would be located in his constituency, recently published draft policy proposals which would make the project economically unviable.

The President of Europe arm of the company, Scott Whitney, said they will not rule out legal action against Ireland if the project is shelved.

He said the firm has spent of millions of euro on the project to date and that up to 600 jobs would be lost if the project is scrapped.

(GK)