Pelham Square project cash question to Audit Commission

Councillor Richard Stevens has lodged a complaint with the Audit Commission after legal issues surrounding the foreshore brought the development into question.

Cllr Stevens said: "My main gripe is that they are wasting public money - things should have been checked in advance."

The Observer revealed last week plans for the 53m landmark building project, seen by many as a symbol of Hastings regeneration, were delayed.

Regeneration company Sea Space said this week building work was always due to start in 2006 - as long as legal problems are resolved.

At present, the council is unable to build on the land opposite St Mary-in-the-Castle, as it is owned by a trust, established in 1893 on behalf of the people of Hastings.

The council is now looking into ways of tackling the legal issues surrounding the foreshore, having already spending 1million on consultation and design plans.

It has established a charitable trust and is looking into promoting an Act of Parliament in an attempt to move forward with plans.

Liberal Democrat councillor Richard Stevens said: "It is quite clear the previous Labour controlled council was perfectly prepared to spend vast sums of money in advance of establishing whether they would ever legally be able to deliver their grandiose projects, which were always subject to the foreshore trust's conditions."

But council leader Jeremy Birch says they have nothing to fear from an investigation by the Audit Commission.

Cllr Birch said: "This is not about the trust, this is about is a political group who are totally opposed to the regeneration of Hastings and they are willing to use any argument to deal with it.

"The people of Hastings should see this.

"We have always known about the trust.

"All that's changed is that the charitable commissioners have said to the council that the land is going to be used for more than parking and leisure activities and are advising the council to handle the trust issues."

p The Audit Commission could investigate the complaint or advise action or dismiss the complaint altogether.