"The announcement by the Environment Agency Wales (EAW) stating that it has now decided to withdraw its objection in principal to our planning application on the issue of flooding is a hugely significant one for our case in the public inquiry," explained Gallacher.
"We are pleased, even at this very late stage, that the Environment Agency has now decided to withdraw and that the information provided in our expert reports has been upheld.
"The EAW has today (Tuesday) produced a letter for the inquiry which means there is no longer a valid justification for refusal of this planning permission based on the risk of flooding.
"This is obviously an important position as it was made clear in correspondence from the Welsh Assembly Government that the key reason for the call-in of our application related to an alleged conflict with TAN 15.
"We have long maintained that the current TAN 15 development advice maps (DAM) in relation to this area have been shown to be wrong. While it has taken a huge amount of time and cost to get to this position, it has removed a major part of the inquiry evidence which we would have challenged and as such is welcomed as it significantly strengthens our inquiry case."
At the start of the public inquiry into the Scarlets' planning application for the re-development of Stradey Park, Gallacher put forward the case for why the Scarlets must move from Stradey to a new stadium in Llanelli.
Giving evidence to Planning Inspector, Clive Nield, on day one of the inquiry he outlined the contribution the Scarlets had made over its 100-year history as a "major force in world rugby" and the region's ambassadorial role on the international stage.
He cited other successful stadia (Liberty, Madejski in Reading, Northampton and Leicester) as examples of how successful clubs were adapting to the commercial reality of the modern rugby era; where revenues from match days and non-match events were being maximised to afford the costs associated with professional rugby at the highest level.
Outlining details from the Scarlets' business plan for the new stadium he told the inquiry: "While the Scarlets are based at Stradey Park we cannot compete financially with teams that have better facilities and revenue opportunities. The Business Plan for the proposed stadium will allow the Scarlets to secure a revenue stream of some £8m per annum - £4m more than we are able to generate at Stradey Park."
As part of his evidence Gallacher outlined a detailed rationale for an iconic new wrap-around stadium with a capacity of thirteen and a half thousand and said the modern stadium facilities had a number of advantages over an ageing Stradey Park:
o Larger capacities to accommodate demand for important match days
o State-of-the-art hospitality facilities required by an increasingly lucrative corporate hospitality market
o Bespoke retail facilities on-site to maximise brand merchandising opportunities
o Additional non-sporting retail, conferencing and hotel facilities making a year-round contribution
"It is essential that the region is allowed to secure a successful outcome to the planning application for Stradey Park. The sale of the land for residential development will enable us to recover the money we have invested and make an £8.5m contribution towards the costs of the new stadium," Gallacher told the inquiry.
"Thereafter we will fund ongoing costs from the enhanced commercial arrangements that the club will receive from the new stadium's facilities."
Gallacher also spelt out the fate facing the Scarlets if the go-ahead was not given following the public inquiry: "If this application is refused, the club will not be able to raise its contribution to the funding of the new stadium and the project will not proceed. The loss will not just be to the Scarlets but to the region as a whole as it will have lost a major sporting, business and social venue of importance to its regeneration ambitions," he said.
If planning is not achieved in its current form, the Scarlets will be faced with two scenarios, according to their chief executive - closure of rugby at Stradey and a new application for Stradey Park as a brownfield site as a means of paying off existing debts, or become little more than a semi-professional side not competing in Europe or the Celtic League and with a squad two thirds reduced, if a small part of the Stradey site could be sold off with planning permission to clear debt.
"We have fought tooth and nail over the last 10 years to keep the unique Llanelli brand at the forefront of European Rugby. None of the above options will satisfy the legitimate ambitions of the Scarlets and its fan base to remain at the very top of Welsh rugby and challenge for recognition as one of the very best clubs in Europe," Gallacher added.
"The future of one of the most famous rugby clubs in the world therefore rests on this decision. The implications of refusal will not only lead to the folding of the club and a major embarrassment for Wales across the sporting world but will also signal a major lost opportunity for the economy of Wales."