Fears that plans for a multi-million pound development in Colchester had been put back have been allayed.

The important and complex project includes a new stadium for Colchester United, northern approaches link road, housing and a business park.

Town MP Bob Russell was told by the Government last week that it had no plans to market one chunk of land in this development jigsaw at Severalls Hospital until autumn 2001 at the earliest.

Following a meeting with health minister John Denham on Thursday, he said the plans were now back on track.

Mr Russell said the minister's original statement had possibly been due to "misunderstandings" of the issue involving council-owned land at Cuckoo Farm and NHS land at Severalls.

He said: "There was a misunderstanding of where things were with the planning side.

"I got the impression that each side was awaiting a sign from the other as to where we go next.

"My letter to him and the meeting brought the whole thing bubbling to the surface.

Both the minister of health and Colchester Council are confident that the matter can be put back on track again."

Last weeks' news of the delay had surprised borough council leader Bill Frame who said he thought things were proceeding.

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