Plan for nuclear site premature.

In January development agency One Northeast was forced to scrap plans to build a nuclear power station after being blasted by all sides.

The Chronicle revealed how regional development agency One NorthEast was offering pounds 50,000 for someone to draw up a business case for a new nuclear site in the area.

The plan caused outrage among local green campaigners and North East MPs, including Newcastle Central's Jim Cousins, who questioned why and how the tender was drawn up before Government policy on nuclear power has been decided.

The tender application read: "The North East of England has much industry capability that could be directed towards any future nuclear build programmes, indeed many of its companies and labour were involved in the UK build of nuclear plants in the 1950-1970s.

"Additionally the North East has one existing operational nuclear facility located at Hartlepool in the South East of the region with the potential to locate a second operational plant to be considered in terms of security of supply potential economic benefits in terms of job creation and business contracts, contribution to the region and high level job creation over a sustained period."

One NorthEast denied the business case was about building a new nuclear power station but admitted the wording was ambiguous and withdrew it to re-write it and then eventually scrapped the tender.

After the tender was scrapped Labour MP Mr Cousins welcomed the decision but called for a full inquiry into the handling of the matter and pledged to table questions in Parliament.

A One NorthEast spokeswoman said: "After careful consideration at the highest level internally, it was felt it would be better to wait for the Government's Energy White Paper Review to better inform us for any future decisions on energy sector development."