A needle exchange is among the plans for the town centre

Middlesbrough Council, and drugs support charity Lifeline, want to set up the centre and a needle exchange.

They say there is a need for such resources and the drugs issue would just be part of the services on offer.

But businesses near the proposed sites said they fear customers would stay away and some retailers said they may refuse to sign a new lease.

A council spokesman said: "The Brentnall Street site would be used as a resource centre for young people providing information and guidance.

"It would be a diversion for young people who may be vulnerable."

'Allay fears'

Jackie Day , who runs a shop closed to the proposed service on Brentnall Street, is concerned at the plans.

She said: "I have been here for 22 years, but I am considering whether to sign a new lease.

"If they want to empty the place by putting something like that in, then that is what they will do."

The site in Oak Street would be used by people aged over 18, offering a range of services, including a needle exchange.

Officials from Middlesbrough Council and Lifeline are to meet business owners on Friday to discuss the issue.

The council spokesman said Lifeline is operating similar centres in other towns and cities, including Manchester city centre, without problems.

He said: "We hope this meeting will help allay the concerns many people have."