A CONTROVERSIAL land-swap deal is vital to safeguard 600 Bolton jobs, a public inquiry heard. If it does not go ahead, the Fort James plant at Horwich could be forced to shut. But if it is allowed, the firm says it would become its British headquarters, creating another 90 jobs and it would be one of the most advanced operations in Europe.

The inquiry began yesterday at Bolton town hall into supermarket giant Tesco and tissue paper manufacturer Fort James's plan to swap land at Mansell Way, Horwich.

Planning inspector Mrs Norah Ball will also consider another application from developers Morbaine to build a store at Old Hall Street, Kearsley. Both applications have won the backing of Bolton Council, but they were called in by Deputy Prime Minister John Prescott's Department of the Environment, Transport and Regions because they were considered out of town shopping schemes which could affect town centres, including Bolton.

The inquiry is expected to last four weeks and around 50 people were in the Festival Hall at the start of the hearing yesterday.

Barrister Mr Patrick Clarkson, representing Fort James and Tesco stressed the importance of the scheme to Fort James.

He said: "If the expansion does not take place as proposed, the inevitability is that the alternative options are not local.

"Horwich will increasingly become less competitive, with a significant risk of closure."

But the public inquiry came close to be stopped yesterday ... before it had begun.

Middlebrook developers Orbit are objecting to the Horwich scheme and they called for the inquiry to be adjourned. Barrister Jonathan Milner argued for Orbit that they had not received some documents in time for the start of the inquiry and their planning director David Short suffered a family bereavement earlier this week and was unable to attend.

But the inspector decided it should continue, saying that the evidence crucial to Orbit's case would be heard later in the week.

If the Tesco and Fort James scheme is approved, Tesco would have a new 10,126 sq metre superstore on a prime site on one of the main roads in to the prestigious Middlebrook development.

Another 220 supermarket jobs would be created with the expansion.

Under the land-swap deal, Tesco would move onto the part of Fort James operation where there is currently a finished goods warehouse on the south side of Mansell Way.

Fort James would then have all its operation on one site on the north side of the road.

The part of the inquiry which relates to the Morbaine application is expected to start on January 26 for 3 days. On Friday, the inspector will hear submissions from Bolton West MP Ruth Kelly and Bolton North-east's David Crausby, who will both give evidence supporting the Tesco and Fort James application.

Also invited to speak will be representatives from Bolton Civic Trust and Horwich Town Council.

MEANWHILE, councillors will consider a planning aplication tomorrow to convert the present Tesco supermarket at Horwich into offices.

They will be told that the Mansell Way store would become ofices for Fort James if the land-swap is allowed.

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