PLANS to turn the GEC site in Melksham into a housing estate have been criticised by councillors.

Last month, Box-based developer Charles Tull withdrew a planning application to convert the former factory into a multi-million pound designer discount store because more than 300 retail and leisure businesses rejected a move to the site.

His new proposal could mean that 67 apartments and 59 terraced houses are built instead.

Mayor Vic Oakman said: "I can't believe all these firms refused to come to the town. The proposed area is a thriving site 10 minutes from the town centre. Any plans for housing will take away Melksham's industrial base and job opportunities. It is an ideal place for shops Leekes has proved that."

Cllr Oakman wants the GEC site to be developed as soon as possible to help the town's push for a new railway station and improve one of the main gateways to Melksham.

He said: "We would have provided a shuttle service for shoppers if it had been given the go ahead."

The Beanacre Road area has already attracted big name stores including department store Leekes and fast-food giant McDonald's.

But Designer Rooms, the leading prospective tenants for the 25,000sq ft GEC site, went into liquidation last month, while discount clothing store Matalan pulled out earlier this year.

Mr Tull's plan for a £6m designer mill fell through two years ago. Sarah Cardy, chairman of the town council's planning committee, said Mr Tull had been forced into a corner because he had exhausted all options.

She said: "Plans for housing were originally put forward in 1988, so it has gone round in a full circle. Traders objected to plans for a retail centre and so did people in Chippenham and Trowbridge who said it wasn't a primary retail area.

"I have every sympathy for the developer as it must be very frustrating. We don't want to rush into a decision before we have taken a detailed look at the proposals."

Mr Tull will discuss the plans with councillors in October.

He said: "It will never be a retail park as Trowbridge and Chippenham are stronger towns, so it is unrealistic and unachievable.

"A window of opportunity has opened and we are using the best team of architects we can find to reach the best solution. It will satisfy the Government's policy to develop brownfield sites for housing.

"I'm going to discuss the issues with the local authority so it would be wrong to comment further before there is an agreement."