A PUB chain's controversial plans to turn Durham City's cinema into an Australian theme bar have moved closer to fruition.

Magistrates have overturned a refusal by Durham City Council's licensing panel to grant Regent Inns an entertainment licence for The Robins, in North Road.

The firm, which already has planning permission from the council, now has only to win a drinks licence to be able to proceed with the £2m scheme.

A four-day hearing before city magistrates is scheduled, but the firm faces objections from the police, the city's Labour MP Gerry Steinberg, residents and the City of Durham Trust.

Their biggest fears are that the new bar, which will hold about 700 people, will add to the growing problems of drunken violence, noise and nuisance late at night.

The firm appealed against the licensing panel's decision and magistrates sitting at Consett overturned the ruling, saying that while they had sympathy with the residents, it was unfair to penalise a firm new to the city because of existing problems.

Regent Inns has said it is a reputable operator, has good security measures, that the planned Walkabout venue will have a calming effect on the area and help regenerate North Road.

City of Durham Trust chairman Roger Cornwell said: "We are still trying to take it in.

"We are disappointed with the outcome. The city council presented the case and the trust went along with local residents to help.

"We clearly got the message across to the magistrates about the problems that exist when the pubs and clubs turn out and that they would probably be exacerbated."

Mr Cornwell said that the objectors were pinning their hopes on the drinks licence being refused in December.

City council solicitor Lesley Blackie said the authority could appeal to the crown court against the magistrates' decision, but was unlikely to do so.

The venue would open until 1am Monday to Saturday, and until 11am on Sunday. The firm dropped a bid for a Sunday late licence.

A condition of the licence is that the firm meets residents quarterly to discuss any problems.

No one from Regent Inns was available for comment yesterday