EAST Cleveland residents were celebrating this week as a merger between coastal towns was thrown out.

A government panel has rejected plans for a greenfield development between Marske, New Marske and Redcar.

The controversial scheme was included in the draft structure plan for the Tees Valley.

The joint strategy unit for the local councils involved argued that to stem population drift away from Redcar and Cleveland, up to 800 more houses and a business park would be needed in the Marske area.

Landowners and developers backed the council, but hundreds of residents and local organisations objected.

But Redcar and Cleveland council leader, Coun David Walsh, said the panel's decision was only part of the story.

"They are still saying we need to provide some 5,400 new houses in the borough over the next 15 years," he said.

"Of course, I believe we can meet some of the demand for new homes through building on reclaimed brownfield land. But the reality is that many of those homes will have to be built on greenfield sites."

Objectors, however, were jubilant.

Local resident and Teesside Green party spokesman Mr Peter Goodwin said: "This is wonderful news.

"The area they targeted is important because the open space between towns helps to preserve identity. Not everyone wants to live in an urban sprawl. This is a victory for local people and for common sense."

The structure plan sets out a blueprint for the area's development over the next 15 years.

Giving his personal reaction to the independent panel's recommendations, Coun Walsh said: "It is like the curate's egg - good in parts, but bad in others."

Coun Walsh was concerned that, at a time when the borough was facing serious problems through steel job losses, the panel had decided against plans for a new business park in the Redcar area.

But he welcomed support for initiatives such as a new Tees crossing and the development of a light, rapid-transit system.

He was also pleased at recognition of an argument for a new town centre to serve Eston, Grangetown and South Bank.

"But I cannot understand why they wish to delete the proposal for a new business park," he said.

"As we are seeing jobs haemorrhaging from Corus, we need new and easily-developed land to attract investment and the jobs that go with it."

And he warned: "If we don't recognise that reality other parts of the region will and that will be a loss to us all."

On housing, Coun Walsh said this would have to be considered within a review of the council's local plan.

"There is a risk that by not allocating a specific area for housing, we could see virtually every field around every town acquiring "hope value" as a potential housing site," he said.

The JSU is not obliged to accept the recommendations, but refusal would trigger a further round of public consultation.

l Other points from the report are given on page 9.