The €3 billion Cork docklands project can still qualify for financial assistance from the Government, according to Minister for Enterprise Micheál Martin.
However, he said mechanisms had still to be worked out to ensure that any such package was in line with EU regulations.
Mr Martin said no one should have been surprised that the project was not included in the 2008 Finance Bill published last week, as a number of issues remained to be resolved.
These included the question of providing aid for the relocation of hazardous substance sites as defined by the EU's Seveso directive, which deals with the prevention of accident hazards involving dangerous substances.
"Some of the proposals submitted are not runners - for example, the proposals relating to remediation and the relocation of Seveso sites from the docklands because of 'the polluter pays principle'," said Mr Martin.
"The view of the Department of Finance is that it won't run with Brussels."
However, Mr Martin said he was satisfied that Minister for Finance Brian Cowen accepted the national importance of the docklands project and he was confident the project would receive State aid through a number of mechanisms, including the National Spatial Strategy's Gateway Innovation Fund.
The regeneration of the 166-hectare docklands site involves residential, office and commercial development. It is envisaged that by 2026 some 20,000 people will be living in the area, with between 25,000 and 27,000 working there.
Speaking in Cork at the weekend, Mr Martin said a detailed scheme for financial assistance would be prepared on the basis of measures recommended by the Cork Docklands Development Forum, which is due to report in June.
"I am satisfied that we have strong engagement from all the Government departments that are represented on the forum and we are determined to progress the project . . . We still have to work out a detailed scheme so it's still all to play for as far as I'm concerned," he said.
The failure of Mr Cowen to include the docklands project in the Finance Bill had received a mixed response on Leeside. Cork city manager Joe Gavin remained optimistic, but Cork Chamber, which represents local business interests, said the Bill had failed to deliver for the city.
Mr Gavin said Cork City Council had made a comprehensive and compelling case for Government support for the regeneration of the docklands. "We had a very positive engagement with the relevant officials in both the Department of Finance and the Department of Environment and those discussions are ongoing so I would still be very hopeful of a positive outcome," he said.
But Cork Chamber president Joe Gantly said he was surprised Mr Cowen had not used "this ideal opportunity for the inclusion of targeted financial incentives".
