THE British Government could be hauled before European courts and fined after one of York’s largest housing developments turned into an international controversy.

Local politicians and officials were today reeling from the news that the European Commission is to step up its investigation into Derwenthorpe, the proposed 540-home model village in Osbaldwick.

But local residents, who have campaigned against the development, were jubilant.

Osbaldwick Parish Council chairman Mark Warters said: “It is wonderful news.”

The Commission launched an investigation last year into the way City of York Council had allocated the land at Derwenthorpe to Joseph Rowntree Housing Trust (JRHT) in 2002.

It announced yesterday the investigation was being taken to the next level.

Unless the Government gives an adequate explanation within two months, the matter could be referred to the European Court of Justice (ECJ).

Britain could be fined if the court agreed City of York Council had failed to follow the rules, said a spokesman for the Office of Government Commerce at Whitehall.

But council leader Andrew Waller insisted the Derwenthorpe development would still go ahead.

“This does not mean the scheme will be stopped,” he said.

A landmark ruling by the ECJ in 2007 changed the interpretation of the laws regarding how councils can sell land, and when they need to go to tender.

Coun Waller said: “That case happened five years after our agreement was signed in 2002, and we took the best legal advice at that time.”

He has written to Yorkshire and Humber MEP Diana Wallis, asking for support in the impending battle.

Coun Mark Warters criticised JRHT for trying to begin work on the site while the case was pending.

“They have tried to pre-empt this decision on the perimeter of the site, at Temple Avenue.

“We will now be calling for a complete cessation of work. This has caused a great deal of upset.”

Bill Woolley, the council’s director of city strategy, said the council had a binding contract with JRHT, which the European Commission could not overturn.

JRHT declined to comment when approached by The Press yesterday.

Tom Hughes, on behalf of the Meadlands Area Residents’ Association, said: “While we, for ten years, have been trying to follow proceedings and adhere to the rules, it seems other people have been doing things over and above it.”

A Commission spokeswoman said the British Government now accepted the Derwenthorpe scheme should have gone out to tender.

But she said: “No measures have been introduced to bring an end to this infringement.

“Furthermore, no sufficient and adequate measures have been introduced to ensure that the award of future land development agreements will be compliant with the applicable European Union rules.”


A decade in the planning...

THE Derwenthorpe plans were unveiled ten years ago this month.

JRHT wanted to build a 21st century version of New Earswick, with eco-friendly houses and a strong community, but there have been lengthy protests from local people.

The current dispute is because Derwenthorpe has been deemed to be a “public works concession contract”, which means City of York Council has a say and an interest in how the land is used. A landmark European ruling in 2007 means that in such cases, and where the council is selling the land, it must go to tender.

The spokeswoman said: “The Commission is of the opinion that in the absence of such a tendering process, the UK has failed to fulfil its obligations under EU procurement rules.”