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

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

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

Alexage Ltd plans to build a non-food park on land between Dragon Lane and Damson Way with 6,039 square metres of floorspace , car parking and access from the roundabout near the area's Tesco store and from Renny's Lane.

Dragonville Developments Ltd's proposals are for a scheme that would include a 9,563 square metres B&Q DIY store, garden centre plus eight other stores.

The development, between Rennys Lane and Sunderland Road, would have a total floorspace of 16,717 square metres 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 submitted an alternative, smaller application that also won approval.

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

The firms say their development, which would have accesses off Dragon Lane and Damson Way, alone could create 200 jobs.

Planning inspector Andrew Freeman said in his report on the planning inquiry that the developments would reduce the length of car journeys shoppers make when they go shopping for DIY or large household goods.

He also said that development at Dragonville would not undermine the vitality and viability of the city's other main out-of-town centre, the Arnison/Mercia Centre at Pity Me. He said: "I have noted that, at present, the centre is trading very strongly.''

In his decision, Mr Prescott said that need for all the proposed developments had been demonstrated.

He concluded that "all the proposed developments would bring about a significant reduction in average journey lengths, have good accessibility by a choice of means of transport, and would not have an unacceptable impact on roads in the area or on pedestrians."