THE British Government has launched its bid to save one of York’s biggest proposed housing developments and to avoid a costly and embarrassing court case.

Government officials have made their keynote submission to the European Commission, explaining why no tender process was carried out at the site of the proposed Derwenthorpe model village, in Osbaldwick, and saying what action they have taken to avoid a repeat mistake.

The York case has become a landmark one, with the UK Office of Government Commerce (OCG) writing to every council in the country, giving fresh guidance on how to handle such developments.

City of York Council has also increased its training to staff, to make sure they are aware of and follow European procurement rules.

The council and the OCG were carpeted by commission officials earlier this year over the 2002 land deal between the council and Joseph Rowntree Housing Trust (JRHT).

The commission said the council should have carried out a tender process with other developers, rather than allocating it straight to JRHT, and said that unless the Government offered an adequate explanation the case could be referred to the European Court of Justice.

Council leader Andrew Waller said the Government had now written to the commission, making its case. He said he could not release a copy of the letter, but said: “It responds to the issues raised by the commission.”

Coun Waller said: “It has been a nightmare to get this through the bureaucracy of Government.”

The council and Government must now wait for a ruling by the commission before they know whether to proceed with Derwenthorpe or prepare for a court date.

Coun Waller said: “The commission will look at it and the hope is that they will see that the necessary actions have been taken and that the response is appropriate.”

He said if a decision was made by Christmas, work on Derwenthorpe could begin by next March. The council has already spent tens of thousands of pounds on the dispute, with Leeds-based law firm Shulmans recruited to offer expert legal advice.