THE former owner of Newcastle United FC, Sir John Hall, yesterday cast an eye over one of the region's most derelict shopping centres and declared: "It's a disgrace. It has to be revamped."

Sir John, who developed the Gateshead MetroCentre, was campaigning in Newton Aycliffe alongside Conservative candidate Graham Robb.

The run-down nature of part of the town centre has become a central issue in the by-election to replace Tony Blair. July 19 is polling day.

"It's a few years since I was here, but it's a big town, 35,000 population, which is the size of my home town, Ashington, where there is a thriving town centre," he said, surveying the boarded-up shops amid the brutal Sixties architecture. "This tells me that there's no civic pride. If I was a visitor, I'd think this is a poor town - there's no hope here.

"But there is potential here. All the people I've spoken to want regeneration. You need a masterplan, which Graham Robb is talking about. You need a partnership. You need Government money and ideas, you need the present owners to invest, and you need a local authority with compulsory purchase which it is willing to use."

Sir John, once described as "Margaret Thatcher's favourite businessman", said: "I've been a Conservative supporter for the past 20 years. We've become a one-party state in the North-East. You need change in thinking and competition to the incumbent people. I'm one of those who likes to see change and new ideas - I would welcome the eastern Europeans, who bring new ideas and work hard.

"We need to change the culture of the area. There's too much of a dependency culture, and there has been all my lifetime. People have to ask: 'Has Labour done enough for this region?' There are more cranes on the skyline due to regeneration, but we still have the basic fundamental problems with health, education and entrepreneurship."

As well as partnership for Aycliffe redevelopment, Mr Robb wants a return to Enterprise Zones to help entrepreneurs start businesses.

Mr Robb also led the 'no' campaign to regional government, whereas Sir John was a leading 'yes' voice.

"Scotland and Wales have now got their Parliaments, so it was a question of how do we get critical mass," Sir John said. "For me, that was getting our own regional government and I was very disappointed when we lost."

Mr Robb said: "To have Sir John's backing for my approach to Newton Aycliffe is solid support from a professional who understands how to enliven shopping centres. It shows I am the only serious candidate with a plan for change."