Update - 1.15pm: Dublin Chamber has said it is alarmed that work to build the 3,500 new homes in the Poolbeg West Strategic Development Zone will not begin until 2020.
Dublin Chamber CEO Mary Rose Burke said the delay calls into question the ability of the planning system to deal with the housing crisis and deliver the Government’s Ireland 2040 project.
Ms Rose Burke said: “This reports of a further delay are major disappointing. We are in the midst of a severe accommodation crisis that is impacting on every walk of life in Dublin, and the Poolbeg West scheme is one that has the potential to deliver exactly the kind of integrated, high-density solution that Dublin urgently requires.
"Delivery of the Pollbeg scheme would make a real dent in the housing shortage, so the announcement of yet another delay is extremely disheartening.”
“The Government’s entire Ireland 2040 plan is all about regenerating our cities through a focus on high-density development of brownfield sites.
"If we want to ensure that Project Ireland 2040 is actually implemented, it’s clear take to take a serious look at the functioning of the Irish planning system.”
A fast-tracked housing project for Dublin which was due to begin construction in 2017 now faces a three-year delay.
The Housing Minister is being urged to intervene in the Poolbeg West housing scheme for Dublin.
It had been hoped construction on the site would start last year and deliver more than 3,000 homes.
However, it now faces long delays as an Bord Pleanala wants more information on recreational and community facilities for the area.
Sinn Fein’s Housing spokesperson Eoin O’Broin said Eoghan Murphy needs to intervene.
He said: "Poolbeg is a strategic development zone and it is a long complicated process.
"Dublin City Council have agreed a very good plan. I think it's unfortunate that it was appealed to an Bord Pleanala and I also think it's unfortunate that an Bord Pleanala don't have sufficient staff to turn that around quick enough.
"We need a decision on this and we need building on that site, so I believe the minister could do more."
Labour Senator Kevin Humphreys has criticised Housing Minister and his cabinet colleagues for the failure to get a promised 'fast-track' housing plan off the ground.
He said: "Yet again this government has failed to deliver on housing.
"Yet again a plan which was hailed as a new departure has failed to come to fruition.
"The Poolbag development was promised on under Simon Coveney, and he spoke at the time of how quickly this development would be delivered.
"Thousands of homes were promised. Now we learn under Minister Murphy that development won't even start until 2020.
"This part of Dublin is in desperate need of public housing.
"How government expects people in Dublin Bay South to have any faith in their ability to deliver such housing in the future, I really don't know."