HOPES were mounting last night that the Government was poised to abandon proposals which threaten the future of a flagship North-East technology centre.

Cabinet minister John Hutton appeared to signal that a proposal to limit the growth of the NetPark development at Sedgefield, in County Durham, may soon be lifted.

Speaking during his visit to the site yesterday, the recently-appointed Secretary of State for Business and Enterprise said: "This is the economic future for the region."

The Northern Echo launched the Shaping The Future campaign earlier this year when it emerged that the revised Regional Spatial Strategy, the planning blueprint that will govern development in the region for the next 15 years, threatened several key job creation programmes across the North-East.

Among the most controversial proposals out for consultation are plans to place a 13-hectare straitjacket on NetPark - a fraction of the 49 hectares envisaged in the original draft of the strategy prepared by the North East Assembly.

After touring the high-tech centre, Mr Hutton said: "It's a fantastic facility - it puts the North-East and Sedgefield on the map when it comes to cutting edge technologies.

"There are developments going on here which are world class - this is the economic future for the region."

Asked if he understood the region's frustration at the threat to NetPark's growth, Mr Hutton added: "The consultation has to run its course, but everyone sees the benefits of expanding the site.

"I can't pre-empt that consultation today, but all the indicators are positive about expansion and growth and that has to be good for the long-term economic future of the area.

"We won't shrink from supporting new technologies."

Last month, then Local Government Minister Phil Woolas offered a glimmer of hope when he told a House of Commons debate that the inspectors recommendations on the large sites, including NetPark, had yet to be accepted. The Government has subsequently asked the North- East Assembly to provide further information on the sites.

Stewart Watkins, managing director of the County Durham Development Company, said: "It's a very positive sign.

"The Regional Spatial Strategy is a concern to all of us and we are pleased that he was encouraged by what he has seen.