Ledbury will be left without a hospital within three to five years, if plans to build a new unit at the Cattle Market fall through.

Herefordshire Health Authority spelt out its view on the effects of any failure of the Cattle Market redevelopment in a statement issued this week.

Hospital developer Shaw Homes is trying to persuade Cattle Market shareholders to sell the site, to allow the construction of a new hospital and new doctors' surgery.

In a separate statement issued yesterday, Shaw revealed that it had secured "almost three out of four" shares. It needs 75 per cent to approach the board of Ledbury Market and Fairs Co Ltd and ask it to approve a compulsory purchase of 90 per cent for outright sale.

"Shares continue to be offered and at the present rate of return Shaw expects to make its offer unconditional very soon," said chief executive Jeremy Nixey.

"Once the offer becomes unconditional there exists a contract between Shaw and whoever has offered their share."

Melvyn Ellis, chief executive of Herefordshire Health Authority, also revealed that Herefordshire Council had other uses planned for St Katherine's Surgery, and is not likely to extend the lease to the doctors beyond 2002.

Mr Ellis said: "Ledbury could be left without a hospital. That is the bottom line. If this scheme does fall through we would not do anything to look for a new scheme. We cannot justify the time and cost, and would not wish to waste public money.

"The existing hospital will not be viable in three to five years time."

Mr Ellis said that the Government's National Care Standards Bill, originally affecting nursing homes, would be likely to be extended to NHS facilities.

He said of the new standards: "If applied to the Cottage Hospital, it would not meet them."

"In Ledbury we faced two problems. The St Katherine's surgery is not available beyond 2002. The hospital is an old building that is not suitable for a modern NHS and cannot be extended," he added.

But he said the authority was committed to helping provide a doctors' surgery whatever the result of the Cattle Market plan.

Ledbury mayor, Spencer Lane, said Mr Ellis' comments were "the reality of the situation".

Town councillor Ken Davies, who is opposed to Shaw's plans for the Cattle Market said there was "no reason" why Ledbury should lose the existing Cottage Hospital, and that it could be refurbished.

David Lloyd, Practice Manager for St Katherine's Surgery said: "Let us put this into context. St Katherine's Surgery is not an ideal building for the provision of health care. We have to carry out patient care upstairs as well, with pregnant mums, elderly people and mums with babes in arms having to climb stairs."

Mr Lloyd added that Herefordshire Council was short of office space in the Ledbury area and looking towards St Katherine's Surgery as one possible solution.

A statement was also issued yesterday on behalf of staff.

Sue Roig, Senior Sister at Ledbury Cottage Hospital, said: "It will be a cause of much regret for Ledbury and its future generations if the opportunity to develop the Cattle Market site is missed".