3,600 jobs stalled by highways chiefs

Feb 10 2006 By Ross Smith, The Journal

Road bosses have put the block on a new office complex which could create 2,500 jobs, because they fear the region's major roads will not cope.

The Highways Agency has put an Article 14 order on Northern Rock's major call centre and office development planned for Rainton Bridge Business Park at Houghton-le-Spring.

The order prevented Sunderland councillors at a meeting last night from being able to approve the development, which is next to the A690 linking the A1 in Durham with the A19 in Sunderland.

The £60m complex, proposed by developer Akeler for Northern Rock, would provide 40,000 square metres of office space. The bank would shift 1,100 of its current staff there, and hopes to create a further 2,500 jobs there over time.

The Highways Agency has said it is not trying to block the development altogether and just wants to collect more traffic information.

But the Article 14 order - one of 10 in place in the North-East - prevents the council from taking a decision until the agency is happy the plan will not overload the trunk roads.

Andrew Sugden, policy director with North-East Chamber of Commerce, said: "This is yet another situation where a job-creating development has been stalled by the use of Article 14s.

"How long will the Government allow the Highways Agency be a barrier to this region's growth? We need prosperity in this region, not a log-jam of planning applications because our transport infrastructure has not received the same investment other regions have enjoyed."

Regional development agency One NorthEast has backed the Northern Rock plan, saying it is directly in line with the regional economic strategy. Director of regeneration and tourism John Holmes said: "One NorthEast is concerned to hear of the Highways Agency's intervention by means of an Article 14 `holding' direction. North-East England is currently enjoying a period of sustained growth in GVA statistics [a measure of regional wealth], but we realise that there is still much to do.

"Delays due to Article 14 can only hamper our progress and prevent the region from improving delivery on inward investment and redevelopment."

A spokesman for the Highways Agency said: "Following a constructive meeting with Sunderland City Council and the developers on February 3, the Highways Agency has requested and is awaiting further information and hopes to receive this in the near future."

Planning permission has already been given for a string of other office developments at the business park, which is three-and-a-half miles from the A1 and two-and-a-half miles from the A19.

Northern Rock assistant director Ron Stout said yesterday: "We are currently working to provide the Highways Agency with information to confirm that anticipated traffic levels will be catered for."

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