A REGIONAL development agency has been criticised for cutting grants to a major eco-project while handing over £2m to help develop Durham County Cricket Club’s facilities.

Eastgate Renewable Energy Village, planned to revive the fortunes of upper Weardale, in County Durham, was shelved after Chancellor George Osborne’s spending review forced One North East to axe its £1m grant.

One North East, itself to be scrapped by the Government, is helping to fund Durham County Cricket Club’s new stadium and gateway building, to include a banqueting suite and conference centre, at its Chester-le-Street ground.

The Northern Echo revealed the task force behind the eco-village, expected to create 350 jobs, has already pumped nearly £2m into the plans for Eastgate, near Stanhope.

The task force is now looking for private sector investment, but says the project – dubbed eco-Disney – may take 15 years to realise.

Weardale county councillor John Shuttleworth said: “They (One North East) promised to deliver jobs and there are no jobs. I believe they have a moral duty to rescind their decision not to fund Eastgate because people in Weardale are entitled to that money.

“It seems to me they have decided to cut one project altogether and one not at all.

Will there be one job created at the cricket club?”

Ian Williams, One North East director of business and industry, said: “One North East had to make a substantial number of cuts to all aspects of its business during this financial year to meet £36m-worth of Government reductions to its budget.

“This was a difficult and painful process to manage as we fully realise the impact this will have on our partners.

“Durham City Vision was also subject to our funding cuts and, given the constraints placed on us, we have to realistically assess all commitments against timeline, affordability, deliverability and economic benefit for the North-East.”

Meanwhile, the task force, which includes Durham County Council and landowner Lafarge, has sent out a newsletter to reassure residents they still plan to regenerate the site.

Lloyd McInally, project manager, said: “Lafarge aims to stay involved in the project until we feel satisfied that our commitment to leaving some form of legacy for the dale is being achieved.”

Councillor Neil Foster, cabinet member for regeneration and economic development, said: “We are continuing to work closely with Lafarge to ensure that the development of Eastgate goes forward and I would like to think that we can still work towards maximising the regeneration benefits.”