WORK on a new Sainsbury's supermarket for Otley is scheduled to start before the end of the year.

Almost three years after planning permission was given for a 20,000 sq ft store in Bondgate, clearance of the site is under way.

A spokesman for the company's property arm confirmed yesterday that clearance of the land had begun and building should start within months.

The spokesman, who was unable to give detailed dates, said a few land ownership problems had still to be cleared up with Leeds City Council, but were expected to be solved within weeks.

He said: "We are still on track and wish to start this year. Most land ownership issues have been sorted out and our agents have been instructed to clear the site."

The news comes after revelations at the weekend that Sainsbury's, along with other supermarket chains, was poised to re-start building programmes across the country, with emphasis on small, town centre stores.

Reports, which came directly after a warning from the Government's all party Small Shops Group, which includes Leeds North West MP Greg Mulholland, that supermarkets needed to be kept in check to prevent the demise of small market towns, suggested that supermarkets were preparing for a new wave of expansion.

The Otley store will be about the same size as Waitrose in Westgate and will include free car parking for shoppers for up to four hours.

As part of the conditions imposed on the new store, Sainsbury's has agreed to build new premises for the Park Lane College, on the site of the former tannery, Gay Lane, which was destroyed by fire in 2003.

Councillor Colin Campbell (Lib Dem, Otley and Yeadon) said he was optimistic that building would start.

"If the site gets cleared up and work starts, I shall be happy. I've said before that we needed to know what was going on at the site and if Sainsbury's gets their act together and starts work, that will be a good thing."

And Otley Deputy Mayor Coun Norman Harrison added: "Some people are opposed to the new Sainsbury's, but I think it will create quite a lot of improvement in that area. We can't leave the site to rot to nothing, I think it is real progress."

Coun Harrison added that he hoped additional car parking provided by the supermarket would help ease the problems faced by Otley shoppers.

"Parking is a real problem in Otley, so many people are just parking in the town and then getting the bus into Leeds. People are always asking me why it is that the car parks are full, but the streets are empty."

Last month Otley Gardeners Association, which rents premises due to be demolished as part of the supermarket scheme, appealed for new premises.

Coun Campbell said there were alternative premises in the town, but added that the association would need funds to make them habitable.