MULTI-MILLIONAIRE property owner Albert Gubay has scrapped plans to develop the Elms Precinct.

And in a double blow to the Whitefield community he has vowed that the site will remain in its partial derelict state. The shock news was revealed in correspondence to the chief executive of Bury Council, Mr Dennis Taylor, written on behalf of Mr Gubay by North Western Properties representative Mr Peter Willers.

In the first message, Mr Willers stated that the company wished to withdraw its application for the land at Elms Square shopping centre and demanded a refund of the planning application fee.

A second letter accused council bosses of making "false promises" about when the plans would be considered and laid blame for the u-turn firmly with the town hall.

The letter stated: "I would just like to confirm that, as indicated previously, and as a direct consequence of your actions, Elms Square, Whitefield, will now remain in its present state. There will be no further development."

Council leader Derek Boden confirmed that the council had intended to make a decision on the latest plans at a special planning control committee meeting last Tuesday but, as the company had delayed in returning certain planning requirements, including the results of a traffic impact study, the planners had been forced to put back consideration until November.

Shocked by Mr Gubay's stinging attack, Coun Boden said: "We do not accept the reason for withdrawing given by North Western Properties.

"The council feels that it has given reasonable undertaking to the company and we would urge them to reconsider. It is incomprehensible."

MP Ivan Lewis, who has been a leading figure in negotiations with Mr Gubay, was left reeling by the news.

He said: "This is a crude attempt by North Western Properties to bully the council into caving into all their demands.

"The company statement that the precinct will remain in its present state of disrepair is totally unacceptable."

He said that it was time for strong action and that urgent consideration should be given by the local authority as to whether compulsory purchase of the precinct was a realistic option.

Mr Lewis, who also paid tribute to the Elms Action Group, added: "The council, community and myself have made every effort to co-operate with Mr Gubay. I am forced to conclude that North Western Properties are unwilling to accept any compromises designed to protect the interests of the community."

A spokesman for the Elms Action Group said: "We are extremely disappointed to hear that discussions have broken down between Bury Council and North Western Properties.

"While the action group was not entirely happy with certain aspects of the planning application, we were nevertheless hoping to see an end to the appalling condition of Elms Square."