PLANS to build houses on the site of a threatened hospital were withdrawn by the Government weeks after the announcement of a by-election in which its future was to be a key issue, it has emerged.

But opponents fighting a potential loss of health services fear the scheme could be resurrected after the polls in Hartlepool on Thursday.

Last night, the timing of the U-turn was questioned by opposition candidates vying to replace Europe-bound Labour MP Peter Mandelson.

Mr Mandelson and Labour candidate Iain Wright attacked the Liberal Democrats early in the campaign, accusing them of frightening people into believing the hospital was at risk.

They claimed the future of the University Hospital of Hartlepool was not an issue, but other candidates have since also campaigned for it to be safeguarded.

A review of health care on Teesside, which had controversially advocated reducing some services at the hospital and ultimately replacing it, was suspended soon after Mr Mandelson's intervention.

Since then, Prime Minister Tony Blair and Health Secretary John Reid have issued assurances that the hospital is safe.

However, other candidates claim there is a real threat to the hospital.

They pointed to the example of Kidderminster where pledges were made before an election, only for the hospital to be downgraded after Labour swept to power.

Mr Wright was jeered at a public meeting last week when he said he was unaware of plans to build houses on the Holdforth Road site, despite being a Hartlepool Borough Council cabinet member.

But it has emerged that an application was submitted in August last year by property management and consultancy specialists Inventures, which is part of NHS Estates.

The bid was deferred three times, and was withdrawn last month as the controversy refused to go away.

A spokesman for NHS Estates, which is part of the Department of Health, said: "We would just like to take some time to clarify the future of the site."

Respect candidate John Bloom, who founded a Save Our Hospital campaign last year, said: "It is to be welcomed, but the timing is interesting given that this has been pushed through the council on at least three occasions and quite clearly represented the will of the health authority until a few weeks before the by-election was called."

Stephen Allison, a hospital campaigner now contesting the seat for the UK Independence Party, said: "Although it has now been withdrawn, it was deferred three times and as a member of the cabinet, Iain Wright should have known about it.".

Dr Richard Taylor, a former hospital consultant who won the Wyre Forest seat three years ago on an independent 'save our hospital' ticket, said: "Politicians should be realistic and honest with the voters. With what is happening in medicine, particularly the reduction in junior doctors' working hours, there will have to be changes."

The MP believes that the best hope for small to medium sized district general hospitals is to share services with their neighbours.

He recommended the model of the recent re-organisation of hospitals in County Durham, which has seen acute surgery handled by hospitals in Darlington and Durham City with plans for more planned surgery at Bishop Auckland hospital.

Without such link-ups between smaller hospitals, the future for smaller hospitals was uncertain, he added.