A multi-million pound redevelopment of a run-down part of Belfast city centre has not been shelved, the Department of Social Development (DSD) has said.

While Belfast City Council has just voiced its concern at reports that plans for the Royal Exchange Regeneration Scheme may be delayed, detailed plans for the £360m regeneration scheme are still due to be lodged with planners later this year.

Councillor William Humphrey, Chairman of the Council's Development Committee, said he was alarmed at suggestions that the funding which had been made available for the Royal Exchange Regeneration Scheme has been 'surrendered' by DSD and the project is 'not likely to progress' in the timescale originally indicated.

"This report creates further uncertainty for other landowners and occupiers in the vicinity of Royal Avenue and Donegall Street," he said.

"It is disappointing again that the Council has not been kept abreast of developments by the Department and had to read about this issue in the Press despite assurances that DSD would consult with council on the preliminary plans and the promotion of a statutory development scheme," he said.

His comments came shortly before the Department said the scheme was in fact still in progress - but was not as far along as planned.

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"We do not need to spend the money in this financial year as we are not as far along implementing the scheme as was envisaged in the autumn of 2007," the Department said.

"That does not though mean that the scheme has been shelved as we have signed the agreement with the developer who must submit the planning application by 31 October 2010.

"We will allocate the money to the scheme when it is actually needed and would now like to use some of the money set aside for it for regeneration projects to renew our urban centres, increase confidence in our neighbourhoods and provide much needed jobs in the construction sector."

A spokesman for Royal Exchange Limited added: "The Royal Exchange project is not on hold.

"The timetable has been agreed with DSD and we continue to undertake the detailed work that will allow us to submit our planning application later this year."

Meanwhile, a Sinn Féin MLA and member of the DSD Committee, Fra McCann, called on the NI Minister for Social Development, Alex Atwood to provide clarity in regards to the delays facing the Royal Exchange development in Belfast.

He had claimed that around £110 million 'had been withdrawn from the funding for the city centre project', as a result of budget cuts.

Mr McCann said: "There is a growing concern over the way in which the Department for Social Development has let the timetabling for the development of the Royal Exchange in Belfast slip.

"The consequences for this is that the Minister may very well have to hand back the monies that were earmarked for this development, over £100m, back into the central pot for redistribution. This would then provide no guarantee, given the strains on all other departmental budgets following indication of British government cuts that DSD would get this money back.

"I am therefore calling on the Minister to clarify the position with regards to these facts on the proposed delay to the Royal Exchange development."

Mr McCann concluded: "If these plans, or other city centre regeneration plans are not advanced then the very real situation exists that these developments may fall and those areas within the city that needs attention will not receive the much needed economic boost to keep our centre vibrant and competitive."

See: Cuts Hit Royal Exchange Project

(BMcC/GK)