AFTER beating off competition from two rival supermarket chains, promising to create 70 jobs, then actually starting building work, it appears that Safeway's plans for a new store may have finally been shelved.

The problem stopping building work proceeding on the supermarket in Barnard Castle, County Durham, is a piece of land, measuring ten metres by six metres.

Safeway offered the land owner, Teesdale District Council, £80,000 for the land, and refused to move from that price, despite months of wrangling.

Now the council has sold the strip to a rival bidder for £150,000.

A majority of councillors have agreed to accept an offer from consultants David Alcock and Partners to buy the land, on the Horsemarket side of the town's main lower car park, even though it is not clear what they want to do with it.

The sale could end a three-year campaign by Safeway, which already has a small store on the car park site, to build a £15m supermarket.

Safeway beat two other supermarket chains to win permission from the council to build the store. It went on to buy land near its original store and knocked down buildings to accommodate the new store.

A public lavatory was constructed as part of the original deal.

But work stopped in June last year over an argument between the district council and Safeway over the price of the small strip of land.

The council argued the land had increased in value since Safeway started work on the site, but the store chain's management disagreed.

One of the councillors who voted against the land sale, Councillor Newton Wood, argued that the council should have at least considered selling the land to Safeway at the lower bid.

He said: "Aside from the money, the new supermarket could have had a number of other benefits, not least 70 new jobs. We should have at least considered further at this stage."

Fellow councillor Arnold Smith declined to reveal which way he had voted, but did say: "I asked the question in the chamber about what these consultants want the land for. I think we should at least have some idea about that."

No-one from Safeway or David Alcock and Partners could be contacted yesterday.