THE region's biggest shopping centre has been given the final go-ahead for a £50m expansion which could create 1,000 jobs.

The MetroCentre, near Gateshead, will increase by about ten per cent under plans for 371,367sq ft of extra floor space.

The development will see 27 new shops built, along with a new department store for Debenhams, at the red quadrant, where supermarket giant Asda used to have a store.

The scheme will also entail building a 1,100-space car park, and an £11m package of improvements to public transport, including an integrated transport interchange featuring a new covered bus station.

MetroCentre owner, Capital Shopping Centres, also plans improvements to the railway station and access roads and there plans for a new direct bus link to the centre of Gateshead.

Secretary of State John Prescott announced in February he was "minded" to approve the development, apart from the car park, which was originally to have 1,650 spaces.

But now, after the company and officials have discussed various planning conditions, he has given his final approval to the scheme.

Capital Shopping Centres' property director John Abel said: "This is a very welcome decision. We will now be working with Gateshead Borough Council and the transport and railway companies to ensure that the benefits are available as soon as possible."

MetroCentre general manager Ron Woodman said: "This is a very exciting time for us. We are hoping to start the work as soon as possible. It should create about 1,000 jobs and there will be about 1,500 construction jobs.

"We are highly delighted. It means that, with the onset of centres elsewhere in the country - such as Manchester and Essex - the North-East can maintain its competitive edge. It is good news for the region.

"All the market research we have done over the years has shown that people want another department store - now we can respond to that demand.''

The MetroCentre has proved a huge success since it was built by Sir John Hall 14 years ago, attracting millions of shoppers.

A public inquiry was held last year after Mr Prescott called in the expansion plans - backed by Gateshead council - amid fears it breached policies designed to protect town centres and reduce car journeys