A BUSINESSMAN who applied for funding from One NorthEast for a project to create 20 jobs in an economic blackspot was shocked to be told it was not a "strategic site for investment".

Gary Gibson, managing director of Gibson Building Contractors Limited, hopes to transform a former butterfly farm and plant centre in rural Tow Law, County Durham, into an industrial unit housing up to four businesses, including his own.

Wear Valley District Council has given planning permission for the plans, on a partial brownfield site in North Road, which would see engineering and scaffolding firms move in and expand.

Mr Gibson, based at Satley, Bishop Auckland, applied for gap funding from the regional development agency in a bid to get the project off the ground, but was told he was unlikely to receive financial support and could not demonstrate value for money.

The builder, who plans to put £300,000 of his own money into the project, said: "I sent a letter to them about five weeks ago and at first they claimed they had lost it so I sent another copy, which was when they wrote back saying I did not fit the criteria and Tow Law was not considered to be a strategic site for investment.

"I don't think they live in the real world - it should be about jobs at the end of the day, not about criteria.

"I am still going ahead with the project anyway, but I am really surprised at One NorthEast since I thought they would give me some support."

Wear Valley District councillor Jeff Gale, who is also chairman of Tow Law Town Council, said he was "bloody annoyed" at One NorthEast's stance.

He said: "I cannot understand why One NorthEast has responded in this way.

"Tow Law is on a major trunk road - the A68 - joining the A1 and Edinburgh, and is ripe for investment."

John Shuttleworth, who represents Weardale on Durham County Council, said: "This lack of support is nothing more than I expect from One NorthEast.

"If this creates 20 jobs, that is 20 jobs that are not there now.

"One NorthEast are not focused on rural areas and see the countryside as somewhere for people to retire and look at pretty landscapes.

"They are biased against anything that is not in the city or high profile. Unless you are on Tyneside, in Sunderland, or Teesside you might as well live on the moon with them."

Ed Rowley, acting director of regeneration at One NorthEast, said: "Every funding application we receive goes through a set process to determine whether or not it is eligible for support.

"In this case, we have asked the applicant to provide more specific details of his project and we look forward to receiving those to see if our financial support is applicable to this project.

"One NorthEast works closely with County Durham Economic Partnership to identify strategic priority projects in areas that offer the maximum economic development return on taxpayers' investment.

"While Tow Law isn't at present classed as a priority for gap funding, the town and its surrounding area is eligible for other public sector investment, such as the Research and Development and Selective Finance for Investment grants, which support business investment and growth, and nurture new commercial ideas.