SUPERMARKET giant Asda has been given the all-clear to build its £55million shopping complex in Hereford.

The government has confirmed it will not 'call in' the project and there is no need for a public inquiry.

Developers Asda/Eign Enterprises were overjoyed at the news, received in a telephone call on Tuesday.

Spokesman Simon Hoare described the decision as 'fantastic'.

Work would start as soon as possible and he hoped Asda would be open by Christmas, 2005. The derelict Greyhound Dog pub will be demolished.

Although Herefordshire Council had already given permission for the complex on Causeway Farm, near the Greyfriars Bridge, there were still legal matters to sort out.

"But we have now had the green light and can get on with it. It is great news for us and, I hope, for Hereford.

"We can now, at long last develop this overgrown site, help provide 450 new jobs, donate £2million to a flood defence scheme for the city and provide major improvements to the traffic flow on Belmont roundabout," said Mr Hoare.

It is nearly four years since Asda/Eign Enterprises announced plans to transform seven hectares of land south of the river, derelict for more than 20 years.

As well as a superstore the scheme included shops, a community and health centre, nursery and houses.

The plan was amended after concerns over flooding and other issues. The superstore was moved further in to the site, shops withdrawn and the number of homes cancelled.

The new plan is for six town houses and 12 flats near the site entrance.