There are 39 vacant beds in the refugee centre in Ballaghaderreen, which the developers want to further extend.
Integration Minister Norma Foley says there are 220 beds in the Emergency Reception and Orientation Centre - but only 181 are occupied.
Next Week and Company wants to build 18 extra bedrooms in the centre - with the planning process ongoing.
But local man Michael Scally thinks the application should be turned down: