A luxury hotel in Tipperary will not be used as an asylum centre after March next year, the Department of Justice has confirmed.

The announcement yesterday followed a determination by An Coimisiún Pleanála that the use of Dundrum House Hotel as an IPAS centre contravened planning laws.

The hotel closed in August last year with the loss of 48 jobs, before later reopening as an IPAS centre, causing huge shock in the area and leading to local protests.

The planning regulator determined earlier this week the site was not an ‘exempted development’, as Tipperary County Council had claimed.

It said the ‘increase in the occupancy’ of the hotel, together with the characteristics of the building, meant its conversion to an IPAS centre was a ‘material change of use’.

It followed a High Court ruling of a similar nature, and meant the hotel needed planning permission for its change of use to an asylum centre, which it had not received.

The Department of Justice confirmed yesterday that the contract for providing international protection accommodation services at Dundrum House will not be renewed after it expires in March 2027.

The IPAS centre is contracted to house 270 asylum seekers.

Michael Murphy, Fine Gael TD for Tipperary South, said in a statement: ‘This is a hugely significant development for Dundrum and one which I very much welcome.

‘I have been outspoken on this issue for a considerable period of time and have consistently raised serious concerns regarding planning, compliance and the suitability of the Dundrum House site.

‘I therefore welcome confirmation that the department does not intend to renew the contract when it expires in March 2027.’

Mr Murphy said his criticism throughout had been directed at the decisions of the State and the planning and compliance issues surrounding the property, not at the people accommodated there.

‘They must be treated with dignity and respect, and the relocation process over the coming months must be managed properly and sensitively,’ he said.

Local Independent TD Mattie McGrath said the decision by the planning regulator was a ‘complete vindication’ of the concerns repeatedly raised by local residents.

‘There cannot be one rule for ordinary homeowners, farmers and small businesses and another rule for developments operating under Government contracts,’ he said.