ROLLS-ROYCE has objected to Derby City Council's plans to create a permanent gypsy camp on its land.

The company's message came in a damning letter calling the selection of its disused car park in Russell Street, Osmaston, flawed.

And it said locating a travellers' site on the land could scupper regeneration of the area.

But the council said Rolls-Royce's objection did not mean the end of the project.

A Rolls-Royce spokesman said the company objected because it believed there were more suitable locations for a travellers' site in Osmaston.

He said: “Our strategy has been to fully engage with the city council over sites in the area.

“Our view is that we have to look at opportunities in Osmaston strategically and as a whole.”

The letter was sent to principal planning officer Ian Woodhead from Rolls-Royce consultants Scott Wilson in response to the submission of a planning application for the site late last month.

The letter says: “We are concerned that the process of site selection was fundamentally flawed.

“The initial shortlist of sites considered by your own consultants, Cdn Planning, did not include the Russell Street site. This site was added later into the evaluative process.

“Progressing the site selected by the council will create a negative effect on the release to the market of the Osmaston Road site and other land in the area.”

Members of Action Group Osmaston, formed by residents in the area, said they were pleased with Rolls-Royce's objection after campaigning against the permanent site since it was first suggested in October.

But chairman Chad Foster said he would not celebrate until the plans were officially shelved.

Mr Foster, 53, of Handel Street. said: “It isn't over until the fat lady has sung. The Rolls-Royce letter encapsulates our objections.

“Osmaston needs regenerating and it now has an opportunity to do so because of the Rolls-Royce site being up for use.

“The fact is that there is a negative perception of travellers' sites and that people will not invest in the area if a permanent site is going to be there.”

A council spokeswoman said the authority was still discussing the site with Rolls-Royce.

She said: “It would be inappropriate to comment on the content of the letter. We're still confident of achieving a successful resolution for all parties.”

The council looked at four possible sites in Osmaston but chose Russell Street as its preferred option because, among other reasons, it was close to Glossop Street, Osmaston, where gypsies have been living without permission since October 2004.

The council would pay for the scheme with £1.4m given by the Government to create a camp in the city, which, according to former council leader Chris Williamson, would be transferable if an alternative to the Russell Street site was needed.