The planning appeals body is to rule on proposals for a new €40m Killarney medical development, after part of the scheme was rejected by town council officials.

The overall plans for the primary care facility were approved by the council, which is to be built within St Finian's Hospital.

However, the inclusion of a dispensary was turned down by planners, despite claims by a consortium of GPs that it is a crucial factor in the scheme.

An appeal has been launched in order for the planning authority to clarify if the dispensary is an exempted use within the development.

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The Killarney Primary Care Development Group now wants An Bord Pleanala to decide whether the dispensary is in fact an exempted development.

According to the developers, around €40m could been injected into the local economy throughout the construction scheme.

It is predicted to last 18 months, generating 150 building jobs.

More than €5m was to be invested in improving local infrastructure during the project, including works to local roads.

GPs involved in the scheme have said the dispensary is essential if the goal of developing a one-stop medical shop.

"By its very nature a dispensary was an absolutely fundamental and essential element of this," said consortium spokesman Dr Gary Stack.

He said the development is "ready to go" once the issues is resolved.

The GPs originally intended to tender for the site, with work starting in spring next year. the expected completion date would have fallen in autumn 2011.

(PR/JM)