TALKS will take place today on the future of Durham Tees Valley Airport after its bid for growth fund cash was rejected - leaving plans to create hundreds of new jobs on a knife edge.

Sedgefield MP Phil Wilson will meet airport owners Peel Holdings to see if a scheme to build an industrial park on land on the south side of the terminal building can be revived.

Ministers have made their position clear after rejecting successive bids from Peel to the Regional Growth Fund, despite Transport Secretary Norman Baker on recent visit to Darlington saying the Government was "very supportive of regional airports."

It looks increasingly likely that the project will only go ahead if Peel funds it privately. Deputy Prime Minister Nick Clegg said: "All I can say to Durham Tees Valley is that they were treated fairly and objectively by Michael Heseltine and the team who scrutinise these bids.

"I know The Northern Echo has backed attempts to ensure Tees Valley keeps its airport and I understand it is a site of regional significance.

"I don't think you would want us to single out projects and put them at the top of the pile where that wasn't absolutely warranted.

"We owe it to taxpayers that we get the best bang for our buck. Any winning bid needs to leverage in the most amount of money and create jobs in the shortest time possible. I understand there were some concerns about the long timeframe over when the investment would be carried out, explained Mr Clegg, who said he would make sure Lord Heseltines team explained their decision to the airport."

Mr Wilson said it was a missed opportunity to create jobs.

"With infrastructure projects you often need to take the long view but the Government only seems interested in short term plans," he added.

James Ramsbotham, the North East Chamber of Commerce Chief Executive, said: "If DTV is to recognise its full potential then it is vital that the land surrounding the airport is unlocked for potential development. This cannot be done without considerable investment into its infrastructure.

"Hopefully the Government will work with the airport to look at other available options."