DEPUTY Prime Minister John Prescott has cleared the way for the redevelopment of a derelict corner of Durham.

He has approved four different planning applications for retail parks on the Dragonville Industrial Estate that could create hundreds of jobs.

The plans were the subject of a public inquiry in July after Mr Prescott asked to look at how they fitted in with new Government planning guidance on out-of-town retail development and local development policies.

Alexage Ltd wants to build a non-food park on land between Dragon Lane and Damson Way with 6,039sq mtr of floorspace, car parking and access from the roundabout near the Tesco store and from Renny's Lane. Dragonville Developments Ltd's proposals are for a scheme that would include a 9,563sq mtr B&Q store, garden centre plus eight other stores.

The development, between Rennys Lane and Sunderland Road, would have 16,717sq mtr floorspace and 832 parking spaces and would entail refurbishment of an existing car showroom. A new spine road would be built between Rennys Lane and Sunderland Road.

The firm also submitted an alternative, smaller application that also won approval.

Sunniside Properties and Mono Container's plans include 9,061sq mtr of floorspace for DIY and bulky goods units, a fast food restaurant and creche on part of the Mono Containers site.

The firms said its development, which would have accesses off Dragon Lane and Damson Way, could create 200 jobs.

In his report planning inspector Andrew Freeman said the developments would reduce the length of car journeys shoppers made.

He said: "The development will not undermine the vitality and viability of the city's other main out-of-town centre, the Arnison/Mercia Centre at Pity Me."

Mr Prescott said that the proposed developments would significantly reduce average journey lengths, have good accessibility by a choice of transport, and would not have an unacceptable impact on roads or on pedestrians