A MASSIVE revamp of Northallerton's Friarage Hospital is not a bid "to recreate James Cook University Hospital in the county town."

This was the view of a North Yorkshire health care professional as progress on the £18m project came up for discussion.

Simon Kirk, director of strategy and commissioning for Hambleton and Richmondshire Primary Care Trust, said the work was an exercise in how to maintain a small hospital within cost limits - a problem at national level.

Referring to the decision by Middlesbrough-based South Tees NHS Trust's decision to go ahead with the scheme, he said: "The Friarage is vital to its communities and the revamp is about improving quality of care. But there is a price tag.

"It is not about re-creating the James Cook Hospital in Northallerton but the sensible distribution of services."

Mr Kirk told a PCT board meeting in Thirsk on Tuesday that contractors would be on site at the Friarage soon.

"This is a project using £18m of public capital to stop us having a children's ward put up by Canadian soldiers during the Second World War, along with other aspects from the past," he said.

PCT chief executive Chris Long said: "I welcome the trust's approach to this work. They have had the task of moving to single-site operation in Middlesbrough yet they have thrown themselves into this and there is a high level of commitment to maintain as effective an infrastructure as possible.

"When instincts on rural challenges could well be to retract, this is most welcome."

Mr Long said he had been "wowed" by the professionalism of the team designing and planning the revamp. "The attention to detail is masterly," he said. "We are going to see something very special open in 2006."

PCT chairman Sue Young said: "This is welcome joint planning to get the best solution for the people of Hambleton and Richmondshire."

Earlier in the meeting, Northallerton charity worker Stella Kilvington said there was no mention of a new diabetes centre in a video display of the Friarage plans.

"And the current situation is appalling," she said. "It is a fire risk, overcrowded and with files in the corridor. How people work there I do not know. I am very concerned."

Mr Long said the concern was valid, and not just in connection with diabetes treatment. "In the first phase of the revamp we have to make the building waterproof," he said. "Phase two is some years into the future and we will be looking at all areas in that.

"There is no reason why a diabetes centre should be in an acute hospital. We have to address this and we will be doing just that the NHS trust.

"But I take the fire risk on board."