The new development, which will be situated in Earlsfort Terrace – where the National Concert Hall is currently located – will incorporate an entirely new auditorium seating 2,000 people as well as a smaller, flexible 500 seat venue, on a considerably increased land plot. In the new configuration, the existing auditorium will be used for rehearsals and as a recording studio.

The Government has given its approval to the trustees of the National Concert Hall to finalise the purchase of the site from the UCD authorities, as soon as possible.

"It's possible that this will open up a greater number of opportunities for contemporary music," one leading promoter told Hot Press. "There are gigs that suit a place like the National Concert Hall, as we've seen with, say, Jack L and Declan O'Rourke. And of course, the 500-seater could be a real boon for younger acts that have a bit of artiness about their performance. But what's most important is that it will potentially open things up for new promoters to get into the arena."

Making the announcement, the Minister for Arts, Sport and Tourism, John O'Donoghue said: "The provision of a signature concert hall on a par with the leading halls in capital cities across Europe will enable the National Concert Hall to meet current and expanding market demand for musical entertainment and cultural events. This development will support the renewed focus by the Tourism Agencies on cultural tourism."

According to a statement issued on behalf of the Minister, the procurement of a new National Concert Hall will be progressed on a Public Private Partnership basis, in accordance with the guidelines on public capital projects, subject to the Minister for Arts, Sport and Tourism and the Minister for Finance being satisfied with the outcome of an evaluation of the economic benefits of the project. The operation of the Concert Hall will be the responsibility of the National Concert Hall itself.

The key elements of the outline development plan are:

• A new concert hall incorporating a main auditorium with a seating capacity for 2,000 patrons and meeting the requirement for open disabled access
• The existing auditorium to be preserved for use as a rehearsal, general purpose and technical recording/broadcast space
• A flexible smaller hall with a seating capacity of 500, enabling smaller concerts to proceed simultaneously with performances in the main Concert Hall
• The proposal incorporates easy access for large articulated trucks transporting orchestral and concert equipment
• It is envisaged that the Earlsfort Terrace buildings would be re-united with the Iveagh Gardens facilitating increased public access. New public rooms, cafes and restaurants would over-look the Gardens and the city.

The statement explains that provision will be made in the multi-annual capital programme of the Department of Arts, Sport and Tourism for the costs involved. "The National Concert Hall, within its limited space at Earlsfort Terrace, is highly energetic and operates with a strong commercial market focus," it says. "Seat occupancy consistently exceeds 80% with patrons being turned away from many "house full" events. The new facility, incorporating a 2,000-seat auditorium when constructed, will enable the National Concert Hall to provide for public demand including the staging of key performances by top-class world artistes at reasonable ticket prices."

The statement concludes: "The historic site at Earlsfort Terrace comprising the entirety of the UCD complex is an ideal city centre location for a signature Concert Hall. In the context of the ever-increasing competition in tourism internationally, cultural tourism is a lucrative and developing product. The new Concert Hall will serve to attract such tourists in increasing numbers."