Agency denies wasting £250,000 on paper mountain of reports

The regional development agency was responding to fresh criticism from outspoken Weardale county councillor John Shuttleworth.

It has agreed to a meeting with Coun Shuttleworth after he demanded talks with recently installed chairman Margaret Fay.

He said: "They must have wasted well in excess of £250,000 in producing reports. So far we haven't seen any results."

One NorthEast said it had spent more than £1.25m in Weardale on creating new jobs since the closure more than two years ago of the former Lafarge cement works in Eastgate.

In a statement, it said that since the Upper Weardale task force was established to come up with projects to boost the economy substantial funds had been committed to help residents in the short and long term.

It said: "Initially, resources were secured from One NorthEast to help those facing redundancy to find new jobs and to assist local companies supplying Lafarge Cement UK to find new business. During the development phase of the Renewing Weardale strategy, One NorthEast funding has been critical to ensuring the viability and feasibility of the flagship projects.

"One NorthEast helped at a cost of at least £125,000 to fund the study into the potential redevelopment of the 166 hectare cement works at the Eastgate site to create a national renewable energy centre - a 'model' village linked to the generation of renewable energy including housing, tourism, business accommodation and tourist attractions."

One NorthEast, through the County Durham Economic Partnership, had identified £40,000 to develop the Weardale Heritage Railway line as a tourist attraction and valuable transport link, while further funds totalling around £1m were being earmarked over the next three years.

Some £150,000 has also gone to the Stanhope market town initiative.

A spokesman said: "We have got enough evidence to show that we are giving this the consideration it needs and there are more funds in the pipeline to create jobs."