THE developers of a multi- million pound leisure and retail park on the outskirts of Bishop Auckland have spoken of their disappointment, after the Government demanded a review of the plans, despite councillors approving them.

Property company Terrace Hill are behind the proposals for land in Tindale Crescent, expected to bring 500 jobs to the area, which will now be delayed following the intervention.

The plans were passed unanimously by Wear Valley councillors in June, but they still needed to go before the Government Office for the North-East for a final decision.

Secretary of State John Prescott has decided to call the scheme in for more scrutiny, because it is deemed to be of more than local importance and may conflict with national policies.

A public inquiry will therefore be held, meaning a hold-up before work can start, and Duncan Mc Ewan, development executive for Terrace Hill, admitted that it was a big disappointment.

He said: "To my mind, the decision was already made by local councillors. We are disappointed that the Government has not let the council decide.

"We've got operators lined up for the site and a delay like this can only put them off coming here. These things take time, but there's nothing really we can do about it. It's just the process we've got to go through now."

The proposals include an eight-screen cinema, restaurants, shops, a bingo hall and 1,000 parking spaces.

Before the delay, seven of the eight screens were due to be completed by 2007, but now it is uncertain when work will begin.

However, Councillor Margaret Douthwaite, who represents the West Auckland ward, said: "I think it will just be delayed and nothing major. It's just a formality and it's understandable with such a large development."

She pointed out that plans for the Asda store in the town had come under a similar review in 2000, and added that recent work to build a West Auckland bypass, near to the proposed site, would be a further boost to the plans.

A date for the public inquiry has not yet been set.