The Dáil has heard that the Government's failure to purchase the former Corrib Great Southern site on the outskirts of the city was a "disaster of a decision".
Galway West Deputy Catherine Connolly was speaking during a debate on student accommodation.
She argued that due to a lack of standardised policy, developers have a blank cheque to build what they like, where they like, regardless of the area or local feelings.
It comes amid significant local opposition to large student blocks underway in Westside and Terryland.
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Speaking in the Dáil, Deputy Connolly said it was a huge mistake not to purchase the Corrib Great Southern site opposite GMIT.
