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The electricity substation buildings are behind the fence just metres from the bonfire, while asbestos is not far away
Social Democratic and Labour Party (SDLP) leader Claire Hanna says it is a "political failure" that pre-action legal proceedings have begun over a contentious bonfire in south Belfast.
It is understood the action could be taken on the grounds of environmental legislation and human rights law.
There are concerns the power supply has been put at risk at Belfast City Hospital and the Royal Victoria Hospital because of the bonfire, which lies near a major electricity substation between the Donegall Road and the Westlink.
Separate concerns exist about the presence of asbestos at the site.
The bonfire is due to be lit on Friday as part of the Eleventh night celebrations.
Hanna, who is the MP for south Belfast, told BBC Radio Ulster's Good Morning Ulster programme that it was a "political failure" that the situation had got to the legal stage.
She said: "I think people are dodging the obvious public safety answer for reasons that they should account for, but yes it is a political failure.
"And we have these political failures, because a lot of issues we go 'gosh that is very complicated, let's not deal with it, or let's maybe leave it to a resident to take a legal action because we don't want to do politically difficult things'."