It's "highly unlikely" a bike rental scheme in Inniskeen will be up and running this tourist season.
This will be the second summer the scheme is not in place, after funding of close to €27,000 was secured for it under the Town and Village Renewal Scheme.
When asked if public liability insurance is an issue, acting MD co-ordinator Damian Thornton confirmed that a possible operator had withdrawn because of insurance costs.
Mr Thornton added that the MD is "trying to keep it as localised as we can, but there is a possibility of widening the search or of a social enterprise partnership".
He also said the MD may need to "re-look at the whole strategy".
Cllr Noel Keelan said the situation was very disappointing and "urged" Mr Thornton to "do all you can to get it up and running".
