WORK has started on a long-awaited £12 million supermarket which could bring up to 150 jobs to Teesdale.

Bulldozers moved on to the site of the proposed Safeway store in Barnard Castle town centre on Monday, to clear the land for the development.

The 15,000 sq ft store, which should be fully operational by March next year, will replace the company's smaller supermarket next to the Galgate car park.

A steel frame for the building will be erected in about six weeks. The rest of the store will be built over 23 weeks and trade transferred from the existing store.

It will then take about 20 weeks to demolish the old store and create extra car parking spaces.

It has taken more than three years for work to get under way, after the company was involved in two years of negotiations with Teesdale District Council.

The wrangle was over the price of a strip of land measuring 640 sq ft.

In 1999, the valuation of the council-owned land was increased from £80,000 to £150,000 and it took two years to reach an "amicable conclusion" to the negotiations.

The sight of machinery moving on to the site has been welcomed by local people, who feel the town needs a better supermarket to offer choice to residents and keep trade in the area.

Mayor Councillor Margaret Hamilton, who represents Barnard Castle East, said: "I'm thrilled to bits that work has started.

"People here need a bigger supermarket, with more choice and better environment. Hopefully, it will also keep locals shopping in the area and attract visitors. It could be of huge benefit to the town and dale. I only hope that if Safeway includes a caf, smaller businesses aren't pushed out."

Bruce Lindsay, development controller for Safeway Stores, said the old store will operate as normal until the new store is complete.

Mr Lindsay said: "The old store was too small to provide local shoppers with a full range of goods and the new one will provide a wider range of facilities.

"We are unable to say at this point how many jobs will be created, but will be liaising with the local JobCentre nearer to the opening date.

"We have also instructed the contractor, Dawn Construction of Prestwick, to use local labour where possible."

l Safeway hopes to submit improved plans to redevelop its main Darlington store after withdrawing its original scheme.

The firm faxed Darlington Borough Council 24 hours before last week's planning applications committee meeting to say it did not want its proposal to be tabled. Planning officers had recommended rejection of the plan for the Victoria Road store, citing conflict with the local plan, because it was outside the town centre boundary.

However, the firm has now explained its actions.

Safeway's development controller Bruce Lindsay said: "Rather than wait for a refusal, Safeway withdrew the application, feeling it would be beneficial to all parties to continue discussions with the council, with the aim of submitting an improved proposal in the future.