MARGARET THATCHER'S celebrated "walk in the wilderness" on the banks of the Tees in 1987 gave birth to what for many locals was an unwanted child.

The then Prime Minister visited the derelict site of the former Head Wrightson foundry, three months after her third General Election victory, to launch a regeneration scheme which would attempt to reverse the area's industrial decline.

Unelected officials were drafted in, bypassing elected councillors, as part of an urban development corporation (UDC) which had powers over land use, planning permission and a position of glory over any jobs created.

The Teesside Development Corporation had a remit to regenerate more than 12,000 acres designated for urban development.

Its successes changed the face of the region forever. Hartlepool Marina, Teesside Retail Park and Middlesbrough FC's Riverside Stadium were glittering examples of regeneration.

When the TDC ceased to exist, it claimed it had attracted more than £1.3bn of private investment, generated £120m from land sales and created or protected more than 26,000 jobs - claims not fully backed up by yesterday's National Audit Office report.

But the ambitious dreams fell short. Former Redcar MP Mo Mowlam said not enough had been done to regenerate the South Bank and Grangetown areas of Middlesbrough.

The original plans for Teesside Park called for hotels, an ice rink with a man-made mountain, an innovative 3-D cinema and swimming pools - but they never materialised.

Critics also lambasted the TDC for simply acting as a property developer and not doing enough for town centre retailing or to help the beleaguered manufacturing industry.

Among the outspoken critics was Ashok Kumar, Labour MP for Middlesbrough South and East Cleveland, who became worried about the way the organisation worked - speaking to Teesside people through Press releases and promotional videos.

Unlike other UDCs, the board would meet in secret, discussing development control issues in private. There were also concerns at senior levels of Government over the disposal of some assets and contracts in the final days of the corporation's life.

In the last six months of its existence, £151,000 of public money was spent on erecting stone obelisks in its own memory and a £60,000 radio and television campaign trumpeted that it was "leaving a better future".

Even after it was wound up, in March 1998, the corporation continued to cause controversy over funding for projects which failed to materialise. They included £600,000 for Stockton Borough Council to demolish Portrack Incinerator, made good by the Commission for New Towns when it took over the affairs of the TDC.

The Government was also forced to step in to honour a £1.4m grant to University College, Stockton, for an urban regeneration course and building improvements.

Government investigators went on to probe the disappearance of the TDC's computer equipment, which the board claimed was sold on legitimately.