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Plans loophole halts Asda fightback campaign

Buy photos » A new Asda store looks set to be built on the site of the former Cheylesmore pub on Daventry Road after being granted planning permission. Photo by Jamie Gray

LAST-DITCH attempts by campaigners fighting a new Asda store have been crushed by a legal loophole.

The firm has been given permission to build an art-deco style store on the site of the old Cheylesmore pub site when councillors narrowly voted through the plans.

After the decision last Thursday residents and traders pledged to appeal to the Competition Commission on the basis the supermarket giant already owned a large store just 1.3 miles away at Abbey Park, Whitley.

When Asda bought out previous owner Netto for £778 million it was forced by competition watchdogs to sell 47 of the Danish firm's stores which sat near existing Asda supermarkets.

But crucially the deal did not include undeveloped plots of land owned by Netto, leaving Asda free to apply for planning permission on the site free from competitions laws, and the appeal process against the deal expired in October 2010.

A spokesman for the Office of Fair Trading said: "The tests weren't met with respect to these sites as either planning permission had not been received or the previous owner, Netto, had the land for a considerable amount of time without doing anything with it."

The news will come as a blow to residents' group Action for Cheylesmore, which had penned a draft letter to the commission outlining their arguments against the scheme.

Frances Fielding spoke against Asda's bid at last week's planning meeting and urged traders to back their bid to block the plans.

She said: "Traders have worked hard to build successful businesses in the current economic climate and treat us like valued customers. They will add more weight to our argument."

Paul Jamieson, manager at the 70-year-old community centre in nearby Poitiers Road, said he hoped the decision would be examined again at a judicial review.

Four councillors supported the plans and four voted against them, leaving planning committee chair Kevin Maton with the casting vote.

Oliver Jones, property manager for Asda, which had already said it would appeal if refused, said: "We hope to benefit the local community as part of our development by bringing up to 40 new jobs, a new pedestrian crossing and a £150,000 contribution for community benefit."