A FORMER enterprise centre, which was a launch pad for more than 100 companies, is to be demolished to make way for housing.

The New Enterprise Workshops (News), in Shildon, was launched in 1984 to provide a fresh start for budding entrepreneurs laid off in the closure of the town's rail wagon works.

Since it was established it has helped to create companies and has assisted 300 businesses.

Now News is moving to a purpose-built £2.8m business centre on the Dabble Duck Industrial Estate in the town.

This poses the question of what to do with its former home in Thornhill Gardens, which was once a primary school.

To bring the building up to modern standards would mean extensive work, including new lighting, lift provision and disabled access.

This option would cost Sedgefield Borough Council an estimated £467,000. Demolition would cost £60,000.

Councillor Bill Waters, borough cabinet member for regeneration, said the workshops had served a useful purpose.

He said: "It has helped lots of businesses which are very grateful for what has happened there, but it is has come to the end of its life.

"The new premises are as good as first class hotel accommodation. The project is absolutely tremendous and there are plenty of new units for people to move into. Hopefully this is the success story for Shildon."

Members of the borough council's executive committee have voted to demolish the old premises, which is at the centre of a residential area and next door to Shildon County Primary School. The land will be sold for housing.

Coun Waters said: "There has been a lot of money spent in Shildon, and it is now taking its rightful place. Hopefully, when the job is completed, there will be a new railway museum, and that will be the icing on the cake."

The business centre is seen as the flagship for regeneration work in Shildon, and will meet the demand for quality accommodation for small and expanding businesses