A NEW £30million cinema and leisure complex in Blackburn is facing a delay because of a wrangle over a railway line which runs through the site.

Manchester-based developers Peel Holdings said it was in discussions with rail bosses to get the freight line removed or re-directed.

Peel was granted planning permission to build a 10-screen multiplex cinema, bowling alley, health and fitness club and fast food restaurant on land at the rear of Blackburn railway station.

More than 200 jobs are expected to be created and Peel said it was about to sign contracts with companies ready to move into the complex.

But work is not expected to start on the site until at least April 2004 because of the delay caused by the railway line.

After receiving planning permission for the site in March, the company was given five years to complete the development. But it has not been able to arrange a start date or schedule of work because it is still dealing with the train track which runs across the site.

James Whittaker, a development manager at Peel Holdings, said an application to move the line had been submitted to the Government's Strategic Rail Authority (SRA) 12 months ago.

But the body responsible for overseeing Britain's rail infrastructure and policy has not been able to find a way around the problem.

Network Rail, the Government body responsible for maintaining the railways, has also been involved in the discussions.

A Network Rail spokesman said the line was still used, although not very often.

He added: "We have got to go through a process of discussion with rail users and the Strategic Rail Authority and that is still ongoing."

Peel also run the Blackburn Ice Arena and said a 24-lane bowling alley, a first for Blackburn, and a family entertainment centre would also be built.

A health and fitness centre with an 18-metre swimming pool, spa pools, steam rooms, solariums, two aerobic suites and a self contained cafe will also be built, along with a fast food restaurant.

Mr Whittaker added: "We do not expect a solution to be agreed, or work to start until well after March next year."

Peel Holdings is one of the leading property and transport companies in Britain, with assets valued at £1.7billion, which include The Trafford Centre, Liverpool John Lennon Airport and the Manchester Ship Canal Company.