A U-turn that will prevent the fire sale of some key sites for investment and jobs in the region was last night condemned as too little, too late.

The remaining assets of the doomed One North-East and Yorkshire Forward development agencies will be transferred to the Homes and Community Agency (HCA), the Government announced.

The move, which follows widespread protests, was hailed as a significant rethink from the insistence, last year, that assets would be sold to “maximise receipts”

and to help with “national deficit reduction”.

However, a Labour MP immediately pointed out that it came more than two months after the decision to sell many key sites owned by One North East, against its wishes. They include: 􀁥 Former Durham Ice Rink, Durham City; 􀁥 Land at Durham Tees Valley Airport, County Durham; 􀁥 Land at Wynyard Park, Billingham; 􀁥 Imperial Park, Middlesbrough; 􀁥 Evans Incubator centre, Newton Aycliffe; 􀁥 Invista Site, Wilton Complex, Redcar.

One North East had argued for the sites to be fully developed for economic development – clearing up land and putting in vital infrastructure – before they were sold.

Only its remaining sites will be retained by the HCA, with local political and business leaders allowed to “influence the development of local assets”, by sitting on joint committees.

A list will not be released until September 19, but is likely to include Old Shire Hall, in Durham City, and Central Park, in Darlington.

Kevan Jones, the Durham North MP, said: “This announcement is too little, too late for many of the assets held by One North East, which have already been put up for sale.”

Paul Callaghan, One North East’s chairman, said: “We note the minister’s policy announcement and will work closely with government to achieve the transfer of all remaining land assets, liabilities and associated staff.”

The HCA plan was the only option left on the table after ministers rejected calls for assets to be transferred to cash-strapped councils, on “buy now, pay later”

terms.

But the Department for Business (BIS) has rejected a second key request – that the lucrative proceeds from eventually selling fully-developed business parks and industrial estates be retained locally.

Asked what would happen to proceeds from future sales, a BIS spokesman said: “The receipts from sales of developed assets will not necessarily stay in each region.

“But, as a whole, the picture is positive for local areas. Every region will benefit as investment will be made in the assets, so that economic growth and regeneration objectives are achieved.”

The Northern Echo requested an interview with Mr Prisk – to ask why the guarantee on receipts could not be given – but was told the minister was unavailable.