DOCUMENTS RELEASED under the Freedom of Information Act reveal "pressure" was being applied "from the Taoiseach" down in relation to a road project for a new roundabout on the N22.
The roundabout would have facilitated the use of a HSE-owned landbank in Killarney, which in turn would have allowed an affordable housing project to advance.
The National Roads Authority (NRA) had "no objection in principle" to the roundabout on the N22 beside the St Finan's psychiatric facility, the documents reveal.
Yet the NRA had already ruled out another roundabout on the N22 just a kilometre away, being sought by Killarney town councillors. It was refused for being against NRA policy on national roads.
The documents released by the NRA state that a roundabout was being negotiated "primarily" to allow development of the HSE owned lands.
Killarney town councillors knew nothing about the plans however and reacted furiously when news of the St Finan's roundabout broke last month at a roads meeting.
The councillors had been lobbying consistently for a roundabout on the N22 to facilitate access to the Park Road shopping area.
Moving a motion in January, Brian O'Leary (FF) warned the town was facing gridlock.
However, the NRA promptly rejected criticism, a spokesman saying it was standing by its policy against too many junctions on national roads.
FOI documents show that a letter from Kerry County Council's then county engineer, Tom Curran, in August 2006 to the NRA outlines how the roundabout - 300 metres from another major roundabout at Cleeney - was required "to provide access to lands owned by HSE, primarily, to allow development of their lands and also to allow Killarney Town Council to avail of four acres of HSE lands for affordable housing.
"Pressure is being applied from Taoiseach down to advance the affordable housing end of the project particularly in view of the cost of lands in Killarney, circa €1 million an acre," Mr Curran continued.
The roundabout would also lead to the closure of a dangerous junction at Lewis Road, he said.
This letter was followed up with traffic assessments for consultant engineers "on behalf of the developers" .
On January 9th last, the NRA wrote to Kerry County Council to approve the proposals, saying the authority had no objection in principle accepting that the cost of the roundabout would be borne fully "by the developer" and outlining a number of conditions.
Fine Gael Kerry South TD Tom Sheahan said yesterday that for years in Killarney, public representatives had been campaigning for different roundabout projects on the N22. This includes years of lobbying for a roundabout at the Lissivigeen Cross junction - "to no avail".
"Then all of a sudden, a roundabout drops out of the sky for HSE lands that are sold or are about to be sold to a developer," he said.
According to the HSE, the St Finan's facility is to be closed and is being sold together with "an appropriate curtilage". The remaining 35 acres are being developed for community health facilities.