Waterford Council says it's going to carry out repair works to the paving in Dungarvan's Grattan Square.
It says it's not satisfied with the finished scheme which was part of a €3.3 million redevelopment of the square.
The local authority says it's currently liaising with both the contractor and designers involved and may consider taking legal action if it doesn't get a satisfactory response.
Larry Bowe, General Manager of Lawlor's Hotel in Dungarvan, says the paving isn't safe:
"The cobble locking that's on it, it looks like it's lifting in parts, in other parts it's sinking.
"I don't think it's the right impression that we want to give for Dungarvan when you're coming into the square.
"We're all trying to put our best foot forward.
It's more of a health hazard than anything. I'm actually waiting for someone to take a tumble."
Patricia Shalloe of Shalloe's Newsagents on Grattan Square says there are other issues with the redevelopment:
"There are too many crossings, people aren't happy with the shared space, we've no traffic lights at the end of Mary Street.
"People are afraid to drive.
"A lot of the paving is coming up even though we begged the council to tarmac that, they insisted on paving.
"We were losing money the whole time, it went on for a year and a half and people haven't come back."
