A man has appeared in court charged with arson in relation to a fire at a disused pub in Ringsend, Dublin in the early hours of New Year's Eve.

Stephen McDonnell, a 49-year-old crane driver, was arrested this morning at his home at Cambridge Park in Ringsend.

The fire caused €2m worth of damage to the Shipwright Pub in Ringsend, which was being renovated to provide emergency accommodation for homeless families.

The fire also had the potential to spread to adjoining residential buildings.

Stephen McDonnell was charged with arson this morning.

His bail application was approved, subject to strict conditions, including that he has no contact with the owner of the pub.

He must also stay away from Thorncastle Street and Fitzwilliam Street.

His solicitor, Tony Collier, told the court his client has lived in his current address in Ringsend for fifteen years and is deeply rooted in the community.

Mr McDonnell, who denies the charge, is due back in court next week.