A new discount supermarket on the outskirts of Newport would create jobs and boost the local economy, an inquiry was told today.

Developer Growing Enterprises want to build a 16,749 sq ft giant retail unit – primed for Lidl – as the latest development at Mere Park on the fringes of Newport. The planning application has gone before a Government inspector to be determined after Telford & Wrekin Council did not deal with the application within 12 weeks.

Today planning expert Paul Newton, chief witness for Growing Enterprises, told the hearing at Grays hotel in Telford the development would benefit Newport.

He said: “I believe there would be a number of significant benefits for the town.

“It would improve retail facilities, provide genuine competition, create jobs, improve sustainability and claw money back from other areas.”

Mr Newtown said that a significant amount of money was currently leaving the area as shoppers travel to discount supermarkets in either Wellington or Telford.

He added: “There is a large amount of expenditure leakage of money generated in Newport being spent outside the town, primarily in Telford. I would have thought that leakage would be a concern.”

Telford & Wrekin Council’s legal team argued that a new supermarket would detract trade from Waitrose and Co-op, which are already in the town centre.

But Mr Newtown said this would not be the case.

“Over the counter services such as butchers and deli would not be provided by a discounter and, as a result, people would continue to shop in the town centre,” he said.

The council yesterday questioned the accessibility of Mere Park but Mr Newtown said that Growing Enterprises had committed to funding a free bus service from the town centre to the site until at least 2014.

In cross-examination, John Steel, for the council, said he doubted people would change their shopping habits and would instead continue to take the bus to either Aldi or Netto in Donnington.

The controversial plans received objections from Newport Civic Society and Newport Town Council, amongst others amid concerns the proposals would damage existing trade.

The inquiry continues.

By Sean Wozencroft