Deputy Prime Minister John Prescott is to be asked to investigate a deal brokered to keep Flakt Woods in Colchester.

Colchester Council's planning committee last week backed plans to redevelop the company's Tufnell Way site for 750 homes. This will foot the bill for the firm's relocation to Cuckoo Farm.

But under the agreement, there was a substantial reduction in the number of affordable homes needed to be provided at Tufnell Way, meaning the site's value is substantially higher and will therefore cover the cost of the move.

There were fears that Flakt Woods would move to Poland if agreement was not reached, meaning a loss of more than 500 jobs and about £16 million to the local economy each year.

As part of the deal, the council agreed to inisist on just five per cent of affordable housing at Tufnell Way, compared to the 25 per cent set in the council's strategic plan for all developments in the borough.

Now, an opposition councillor is writing to Mr Prescott, Secretary of State for local government and the regions, asking him to investigate the deal.

Gerard Oxford (Ind, High Woods) said it was wrong to cut the amount of affordable housing, and instead the council should reduce the payment required as contribution towards education, the arts and transportation.

Published Tuesday January 13, 2004

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