A CONTROVERSIAL plan to demolish a former textile factory and construct a �3 million supermarket in its place has received the go-ahead - despite warnings it will "kill the high street".

Although the proposal to create a supermarket at the site of the former Allied Textiles factory at Mid Road Industrial Estate in Prestonpans had originally been rejected by East Lothian Council planners because the site had been zoned for industrial use in the council's Local Plan, councillors overturned that decision at a Local Review Body meeting on Tuesday.

Councillors Ludovic Broun-Lindsay, John McMillan and John Williamson made the decision, having earlier requested more information on the viability of the derelict site, in the south of the town, less than a mile from Prestonpans High Street.

The new supermarket is predicted to employ 60 people.

Robin Holder, agent for the applicants Bankhead Land Ltd, told the meeting: "There is a prospect here that is viable, that is creating investment, creating jobs and providing a facility that, under our analysis and I hope the council agrees, will be of benefit to the people of Prestonpans." Mr McMillan said: "I am really concerned about the lack of industrial land and conscious of the local development plan but I think to have the site sitting around, undeveloped, for another two to three years, not even being sniffed at by the market, is a concern." Mr Williamson added: "I would rather see something on the site than see it deteriorating further and further with no prospect of anything happening." Mr Broun-Lindsay was satisfied that granting planning permission would not set a precedent for similar applications contrary to the Local Plan, as it was sufficiently unique, and all three councillors decided to grant permission.

However, the Local Review Body's decision has raised concerns locally about the impact on town-centre businesses.

Jimmy Yule, Prestonpans Community Council chair, told the Courier: "The community council unanimously objected to this right from the start.

"It is the last thing Prestonpans needs, it will kill the high street stone dead.

"We would like to see industrial units. There have been businesses making money there for years.

"The developers just sell to the highest bidder. They don't have a scooby about Prestonpans." Ward councillor Willie Innes, and East Lothian Council leader, also raised concerns about the decision, saying: "I'm disappointed. There were a lot of concerns raised locally about another supermarket in the area and it was felt the industrial site is the only place in Prestopans for manufacturing and jobs.

"While there will be jobs created, it probably has a consequence of lost jobs at other retailers. I think more time and effort should have been taken to attract different types of business.

"When the council developed units there they filled up quickly and I think a lot of people felt there was still an opportunity for industrial activity." However, Duncan Hamilton, of New Land Assets Ltd, which together with Plum Developments has formed Bankhead Land Ltd, said the company believed that the store could encourage people to shop locally, as residents would not need to leave Prestonpans to visit other supermarkets.

"The existing building has reached the end of its life and it's a bit of an eyesore," he said, describing the proposed store as a "huge improvement".

Mr Hamilton said an operator would be identified in the coming months and construction would then begin, with the store expected to open in autumn 2014.

The store, expected to measure about 20,000 square feet, is described as a mid-sized supermarket rather than a superstore or convenience store.

Rumours in the town suggest that Morrisons could be among the front-runners for the site.

IQ Textiles went into administration in September 2009 and the factory was bought by Allied Textiles the following month, amid promises that operations would continue. However, the factory was shut the following spring amid widespread anger, especially after the company created 40 new jobs in Lancashire.