DELAYS to a £50m hotel and conference centre could lead to a local firm losing out to a national rival.

Plans for the prestige complex, set to create 300 jobs, were thrown into turmoil when a Government quango stripped Gillingham-based Jade Hotels of its exclusive right to develop the project.

Jade, based in Byron Road, has worked on the prestige project in Chatham Maritime for more than two years, spending hundreds of thousands of pounds on the scheme.

Its design by leading architects had been approved by the South East England Development Agency.

But the dockyard's bid for World Heritage status brought English Heritage into the picture and the firm claims that its officials objected to the proposed design on the grounds that it was too high.

SEEDA sent Jade back to the drawing board and a new design was commissioned. Jade says it should be ready by Christmas.

So bosses Derek and Jane Holland were shocked by a letter from SEEDA telling them that they had lost so-called "exclusivity”.

The agency said Jade had taken too long and the scheme was now open to offers from rival developers.

Jade director Jane Holland, who grew up in Gillingham before moving abroad, said she was "aggrieved" by the decision.

"There hasn't been lack of movement," she said. "We've got the design, it's just that SEEDA said it was agreed but English Heritage said it wasn't."

She added: "If you've got all these quangos involved, how on earth does anyone put up a building?"

Jade had done all they could to meet SEEDA's wishes. "We've been working in harmony with SEEDA and every time they've come to us and said they wanted to change this or accept that, we've accepted it in the spirit of helping them sell the site.

"We're upset that that kind of accommodation for them has not received corresponding loyalty in return."

She added that Jade's bid to create the complex had generated more interest in the site.

"This is my home town. I believed we were beginning to do something they couldn't find themselves. Until we turned up, not a soul was interested."

The firm is appealing against the decision and Mr and Mrs Holland have asked for an urgent meeting with SEEDA chiefs.

Jonathan Sadler, SEEDA's project director in Medway, said: "SEEDA is disappointed that despite efforts by both parties, Jade Hotels Limited has been unable to meet its obligations to achieve any substantial progress in bringing forward the development of the hotel over the last 18 months.

"Because of strong interest from other hotel developers, we are inviting all interested parties to present their schemes for the site and this does not preclude Jade Hotels Limited from developing its plans further."