DEVELOPERS' plans to build nearly 200 houses on land once earmarked for a travellers camp are under threat after a rival housing company called for a public inquiry.

Proposals by McDermott Developments to build 194 homes on land between Douglas Road and Tong Lane, Bacup, could come under govenment scrutiny after an unnamed building firm contacted the Government Office North West about the scheme.

It called for the inquiry because it wanted to know more about proposals that could see building on a greenfield site.

Rossendale Council's development control committee was due to discuss the application on Thursday.

But a decision was deferred after it received a letter from the company just 48 hours before the meeting.

McDermott proposes to build eight different types of house on the land for which residential planning permission was granted in 1966 .

Outline planning permission still exists for the site because permission was granted before the introduction of time limits on planning applications.

Last year councillors vetoed plans to turn the site into a travellers camp site.

Brian Sheasby, the council's development control manager said a decision on whether to call in the application will now be made by the Deputy Prime Minister John Prescott.

He said: "If they do not call it in then the process of issuing the approval notice subject to conditions can be completed.

"The council wants to approve the application but understands the process.

"We do not know what information the government office wants from us.

"I don't know how long that will take but I will not be surprised if it takes two or three months."