THE National Railway Museum last night moved to clarify the level of support it is giving a £55m leisure scheme.

The project, for the derelict former National Garden Festival Site, in Gateshead, is the brainchild of North-East businessman Crake Simpson.

It includes plans for shops, pubs, offices and a railway heritage and education centre claiming links to the National Railway Museum (NRM) in York.

Mr Simpson said he had a letter of support from the museum for the project and an offer of the loan of display items.

But last night the NRM was attempting to distance itself from the project, claiming it had only offered "moral support".

It is thought to be worried about a potential conflict of interests with the Timothy Hackworth Railway Museum, in Shildon, County Durham, with which it has a joint partnership.

Andrew Scott, head of the National Railway Museum, said: "We were very surprised to see the NRM's name linked so strongly with the proposed railway heritage centre at Gateshead.

"We wish this project, and indeed any scheme that helps to promote the public's understanding of the railways, the very best of luck."

A museum spokeswoman later conceded that the York museum had offered advice on the possibility of borrowing an item from its national collection.

Mr Simpson confirmed he had a letter of support from Richard Gibbon, head of collections at the NRM, dated April 30.

The project had been offered the donation of the Newcastle Diamonds - a railway crossing structure formerly in place at Newcastle Central Station.

Plans for a railway heritage centre as part of the development were not intended to challenge the Timothy Hackworth Museum, Mr Simpson said.

His scheme for the former festival site could include a North-East version of the London Eye. It has been welcomed as a way of transforming the area.

But campaigners seeking to preserve the North-East's railway heritage have said they are surprised at the choice of Gateshead as the location for a railway centre.

Many believe that Darlington and south Durham are the natural hosts for such facilities, because of their place at the birth of the railways.