THE future of an organisation set up to boost Saltburn hung in the balance this week.

A war of words broke out as Saltburn improvement company chairman, Mr Jack Chester, resigned amid claims of secrecy and poor communication.

"They want a puppet, not a manager," he said.

He also cast doubts on Redcar and Cleveland council's statement that the new watersports building would be ready by the autumn. "That attraction is trouble," said Mr Chester, "and it will fail to serve its original purpose."

Coun Barbara Harpham immediately called for answers in the affair, and the issue is likely to be spotlighted at a town forum on Monday at which she will be chairman.

Mr Chester is the company's third chairman in recent months. He said he had been trying to push the seafront development, but had been told not to make public statements about the scheme. "I can't agree with that," he said. "It is like a closed society."

He said a new foreshore sports centre should have been up and running 18 months ago. But an amended plan considered by the council this week meant the building would fail to serve its original purpose, and he said the cost of the project had nearly doubled to about £500,000.

He said the new plan featured only two toilets which would be mainly used by staff, plus a clubroom, caf and retail unit. But Rural Challenge funding was for a centre to attract more surfers and tourists and bring jobs to the town.

Mr Chester was worried about seafront traders who, he said, would suffer because of delays. "Even if work starts soon, there is no way it can be finished by autumn so we will miss yet another summer season," he said. "Even after planning permission is granted, a long-standing erosion problem on the bank side will have to be dealt with before work can start."

Mr Chester claimed the improvement company, originally formed as a partnership with local businesses, had not completed one single development. After problems with the initial set-up, the council backed its bid for Rural Challenge funding.

"But it was not properly thought out," he said. "It is a real mess."

Coun Harpham said there had been concern about the organisation for some time. "Funding has come from various sources so it should be open, transparent and accountable," she said.

She said people needed to know why the seafront building had taken so long to build, what was the current situation with the controversial artists' studios plan and if everything had been managed in a competent way.

"It is unrealistic to ask the new chairman, who has only been there for six weeks, to have all the answers," she said. "These questions should be addressed to anyone who has at any time been responsible for running the company, employee or board member."

Saltburn community stalwart, Miss Jackie Taylor, is one of the company's directors, but was unavailable for comment.

A council spokesman said the authority was taking over the watersports project because improvement company funding ran out in September.

"The company has always agreed to manage and maintain the facility on land leased from the council," he said. "The application is for internal changes. We hope to make a start as soon as possible, hopefully by the end of the month and after we have established that funding is in place."

Extra cost had been incurred due to stabilisation work on the bank side.

l Redcar and Cleveland council, which has agreed in principle to take over management of the watersports project, is arranging funding talks with government officials at the regional development agency One NorthEast.

While the company pursues new funding sources, the authority has agreed to administer and manage contracts on its behalf.

The design of the watersports building was the subject of a national competition for architects and made provision for a caf, two retail units, changing facilities and toilets, plus a viewing area/clubhouse