Coppergate Riverside would claw business back to York city centre from Leeds and out-of-town shopping centres if it gets the go-ahead, the public inquiry into the scheme was told.

But if the £60 million redevelopment scheme is turned down, the city will continue to lose its market share over the next five years, said specialist retail planning consultant James Williams.

Trade will continue to be won by Monks Cross shopping park and the designer outlet at Fulford as they continue strengthening and maturing.

Mr Williams, a witness for developers Land Securities, was speaking on the first day of the major inquiry at the Guildhall into the company's controversial scheme to re-develop land between Clifford's Tower and Piccadilly.

He said one major element in drawing in extra shoppers to the centre would be the proposed huge new department store in Piccadilly.

Any watering down of the scheme to create more small units might be more dangerous to the centre. "York does have a preponderance of small units in historic properties," he said, suggesting that this explained why the shops in Stonegate Walk had not worked and had now closed down.

Adam Sinclair, chairman of York Chamber of Trade, said in cross-examination that Mr Williams' comments reminded him of the great debate of the 1990s about the city centre versus out-of-town.

"We have learnt to live with each other," he said. "We are all in this together."

Mr Sinclair also suggested the development would be harmful to the city centre by elongating the retail core and taking away its compactness. He said almost half the shops in Micklegate were now standing empty. But this was denied by Mr Williams.

Earlier Mr Sinclair had complained that he had not had enough notice to prepare for Mr Williams' appearance at the inquiry.

He said the order in which witnesses were called had been shuffled.

"My impression was that design matters would be discussed first," he said.

"The first I knew about retail being discussed first was this morning. I wasn't even intending to be here this afternoon, but now clearly I have to cross-examine.

"I think the inspector is a fair man and I am sure he will take this short notice into account.

Earlier, John Steel, barrister for City of York Council, said there was a clear need for provision of retail space for national multiples and a new department store in the city centre. "This is currently unable to be located in the city centre.

"York requires to attract national multiples and will not be able to do so without providing for a suitable scheme.

"It is essential for the vitality and viability of York city centre, doing nothing is not an option."

The Coppergate scheme was given the go-ahead by planners in November 2000 after a decade of heated debate. But massive opposition, including petitions holding thousands of signatures, forced Deputy Prime Minister John Prescott to order the inquiry.

Updated: 09:08 Wednesday, January 16, 2002