A PROPOSAL for a major housing development on part of an industrial estate has been turned down for a second time.

Sedgefield Borough Council received an application for a 181-house estate on the edge of the Green Lane Industrial Estate, in Spennymoor.

A previous application was turned down in 2002. An appeal was lodged but withdrawn before it could be heard at a public inquiry.

Borough councillors considered the latest application at a development control meeting.

The proposal drew objections from Spennymoor Town Council, Durham County Council, the borough's economic development team, residents and neighbouring industrialists.

Planning officer Charlie Walton told councillors the key issue was whether it would be acceptable to release part of an industrial estate for housing.

Mr Walton said he felt it was important to retain the land for possible future industrial use.

He said: "If a major industrial proposal comes along, we need to be able to demonstrate that we have got sites and/or buildings available.

"This is not a short-term measure, this is strategic thinking. It is visionary and it is looking to the future."

Alan Eastburn, works director at Bekaert Handling and Display, addressed the meeting to outline his company's objections.

He said the business had been established on the estate for 35 years and building houses on the land could harm its expansion plans.

Output had grown by 34 per cent in the past year, he said, and the company had processed 8,000 tonnes of steel, which had been achieved by working three shifts around the clock.

He said: "We intend to increase and continue this growth over the next three years.

"To achieve this growth we need to utilise all existing land up to the boundary. Without this growth it would be difficult for us to continue in our competitive market.

"Based on past experiences of residential developments close to our manufacturing sites, we believe it would impose restrictions upon our operations, especially during the night."

Tudhoe councillors Agnes Armstrong and Barbara Graham agreed with the objectors and members voted unanimously to reject the application.