Members of north east Fife area committee unanimously gave the go-ahead to an application from Leicester-shire-based BDW Trading — of which David Wilson Homes is a trading name — in conjunction with Curtis Fine Papers Ltd.

The developers are seeking permission for 27 flats and 42 houses, an access road, parking area and amenity space, although the final say over whether the development goes ahead lies with Scottish Government ministers.

Committee members were told that this was owing to outstanding objections from Scottish Natural Heritage (over the scheme's potentially serious negative impact on the protected Tay and Eden estuaries) and the Health and Safety Executive (which had concerns over the impact the development could have on a high-pressure, underground gas pipeline).

However, officials expect those concerns to be resolved fairly quickly.

Following negotiations with the developers, 21 affordable houses included in the plans for the 4.6 acre site at Motray Park will be completely integrated with the rest of the houses and flats.

Previously, the affordable homes had been planned for a separate site.
Moving approval, Councillor Tim Brett said the application was clearly important not just for Guardbridge but also for the whole St Andrews area where there is a notable housing shortage.

Referring to the detailed, 25-page report before them, he pointed out that planning policy aimed to safeguard existing industrial and business activities from restraints put on them by new developments and that the plans were important for the mill — the largest employer in the immediate area — and the economic viability of the area.

In the report, lead planner Chris Smith said more than 250 people were employed at Curtis Fine Papers Ltd. which had a predominantly local workforce with skills "very specific to paper-making."

Job cuts could mean the workers, aged on average around 45, could find it difficult to find alternative employment at the same rate of pay.

Mr Smith said that, although profitable during the 1990s, the paper mill had been in "considerable financial difficulties" in the last five years, partly owing to changing market conditions.

A management buy-in two years ago had brought in extra cash and continued efforts to improve the company's position should see it return to profitability this year.

Approval of the planning application would give further protection for the mill in a "difficult and potentially volatile market."

Mr Smith added: "The timing of a final decision is also considered important for the company, as they wish to complete their restructuring in 2008 and create a secure base on which to grow further in future years."