PLANS for a new library and business development in Thornbury town centre are in danger of foundering.

The ambitious £6million scheme by shopping centre owner Peers Group to develop the current library site is in doubt after one of the main prospective tenants warned it might be forced to pull out.

Bosses at Thornbury-based insurance company Europa Group say their need for increased office space is so pressing that they are already looking at alternative premises elsewhere in the town.

The successful firm, which celebrated its tenth birthday this month, has 150 employees operating from five different sites in Thornbury.

Managing director Barry Hulbert said: "We are still talking with Peer Group but we can't sign up to something that has no definite date.

"I was expecting that by this time we would practically be moving into the new building but not a brick has been turned and we can't wait forever.

"We have told them we have a problem because we need new accommodation more quickly than they can provide it and there is no way round that."

Mr Hulbert stressed that the firm had no plans to leave Thornbury.

"We are still committed to the town and we have big plans to grow here," he said.

Peer Group spokesman Robert Couchman said Europa had been a key factor in the library development from the start and their current position put the whole scheme in doubt.

"It's been a Catch 22 situation," he said. "They have been saying the time factor is too late for them and obviously we could not put work in hand until terms had been agreed.

"Without Europa going full steam ahead it's difficult to find someone else in Thornbury to take that office space.

"Even so, at this stage I'm not saying that we are pulling the plug on the development."

The uncertainly comes a year after district planners gave the green light for the controversial three storey development.

It would provide Thornbury with a new library double its current size - albeit on the first floor - along with top floor office space and additional shops to breathe new life into the St Mary Centre.