A DEVELOPER was last night celebrating winning a seven-year battle to create a major riverside housing scheme.

Secretary of State of Environment, Transport and the Region's, John Prescott, has given his seal of approval to plans by Yorkshire-based St Paul's Developments for land at the former Stella South Power Station, Blaydon, Tyneside.

The proposals include 375 houses on 19 hectares of land, an area of open space, landscaping, a riverside walkway, public house/restaurant and riverside parking.

Gateshead Metropolitan Borough Council, which wanted the land to be used for industry, refused permission and an appeal by St Paul's was dismissed - a decision which was quashed by the High Court in June 1998.

In his latest findings, Mr Prescott said he did not agree with all of the inspector's conclusions and had decided to grant full planning permission.

He said the proposal was likely to reduce pressure for the development of greenfield sites elsewhere and thereby help conserve the countryside.

St Paul's, which acquired the site from National Power in 1993 and immediately demolished the power station, hopes work will start on land reclamation in the spring.

St Paul's managing director Mel Burrell said: "I am absolutely delighted with this decision - not just for ourselves but also for the local community, who have supported us. This decision is the final step in the removal of an eyesore.