OKEHAMPTON could be in line for its third supermarket if an application by German discount supermarket group Lidl is approved.

The firm, which has 200 stores in the UK, is applying to build a supermarket on the old primary school site in School Way complete with a 105-space car park.

But questions have been raised over the need for a third supermarket in the same area of town.

Mayor Christine Marsh said any industry was good for the town but the choice of location was baffling.

'I cannot understand why all the supermarkets are going to be in one place,' she said.

'I believe there is a need in Okehampton for a low-cost supermarket but the vacant site in Crediton Road, which would cater for the people at the other end of the town, would be more appropriate.'

She said the store would bring the two things that Okehampton needed desperately — employment and car parking.

The company is expected to employ 25 staff in its store, which would measure 1,177 square metres.

Lidl, whose application for a supermarket in Tavistock was turned down in 1998 because of its out of town location, is in the habit of opening stores next to retailers such as Waitrose, which is aimed at the higher end of the market.

Principal planning officer John Milverton said the company specialised in low-cost imported food and in the last couple of years it had been opening stores all over Britain.

'The company likes to open supermarkets near quality retailers so it can piggy-back on their business,' he said.

He said the site at Crediton Road was earmarked for residential and light industry and it was unlikely that the authority would look favourably on a supermarket which was away from the town centre.

'Stores that are isolated from the town centre tend to draw business away from the heart of the town,' he said.

'The more shops that are in one place, the more people will walk from one to another. People tend to spend money in other shops if they go to a town centre supermarket.'

Mr Milverton said competition was not a planning issue but if there was an issue of oversupply this would be considered.

One of the main considerations regarding the application is expected to be traffic and the applicants will be asked to submit an impact traffic assessment, said planning officer Chris Watson, who is dealing with the plan.

He said the store was small in supermarket terms but the capability of the roads to service the amount of additional traffic was an important issue and one likely to raise concern with the local people.

'We will be also looking for information about the possible alternative means of encouraging customers to the store apart from cars,' he said.

A spokesperson for Somerfield said both Lidl and Waitrose were aimed at a different market from Somerfield.

'We are not overly concerned because our customers are very loyal and would not necessarily shop in the other stores' she said. 'As far as Okehampton is concerned, the more choice for the local people the better.'

The plan is expected to be discussed by West Devon Borough Council planning committee in March.

Lidl did not wish to comment.