A CONTROVERSIAL shopping centre expansion would only take away three per cent of shopping from Blackburn, developers claim.

On the first day of a government inquiry into plans to build a bigger range of shops at the Whitebirk retail park, on the Hyndburn/Blackburn boundary, owners Peel Holdings said the change would mean more shops, better landscaping and an improved gateway to Blackburn.

Last year Hyndburn Council threw out plans for limited food and fashion retail on the site after opposition from businesses in Blackburn and Accrington.

The five-day inquiry, chaired by inspector Andrew Pykett, was called after Manchester-based Peel appealed against the council's ruling.

Roger Lancaster, for the developers, said they wanted to spend almost £6million on landscaping including reduction of overhead power cables, and would need to make more money from the site to pay for it.

He said many units there were empty, and only one new letting had been agreed in the last six years.

He said: "Our investigations show the impact of what we want to do on Blackburn town centre would be just three per cent by 2013 - and that doesn't even factor in the increased shops in the new Blackburn Mall, which is more than 60 per cent let, two years before it is due to open.

"There will be no impact on vitality or viability in the town centre."

Ian Pointer, for Hyndburn Council, said the extra shops should go to the Arndale Centre, Accrington, or the new Mall.

He said: "It is imperative these sites attract investment, and that their full potential is realised.

"There is a real risk that by allowing competing facilities at the Peel Centre, with its low overheads, easy access and free parking, that investment in nearby town centres, which is sorely needed, may be discouraged."