HEARTS chairman Wallace Mercer last night said he still hoped his club

would get a new stadium at Millerhill, even if it took an appeal to the

Scottish Secretary to get permission.

He was speaking after it became clear that Lothian Regional Council

now seems set to vote down the scheme, with the ruling Labour group

coming out against it, and the council's transportation committee

rejecting the scheme yesterday.

However, he did not blame the councillors, claiming they had been

virtually ordered to turn down the scheme by planning officials

frightened of setting a precedent for encroachment of the city's green

belt.

Both sides were quick to use the Trojan horse metaphor to criticise

the other. Councillors felt the developers were using the new stadium to

push through commercial development, while Mr Mercer believed the

council was using the stadium issue to force the Scottish Office to

increase road funding allocation.

''The site creates serious difficulties and would do so even if the

development was scaled down,'' said planning convener Councillor David

Costello. ''It would involve a commitment to extra cash for road

improvements from the Scottish Office and they have never reacted that

way in the past.''

However, the councillors' support for the idea of a new stadium was

welcomed by Mr Mercer, who said the bulk of the #100m Millerhill plan

had been non-contentious.

He hoped a way could still be found to meet the varying aspirations of

different local authorities, the Government, and the need, recognised on

all sides, for a new football stadium with a capacity of up to 30,000 in

the city. This would become all the more obvious, he said, if Glasgow

ended up in a few years time with Ibrox plus a redeveloped Hampden, and

Celtic Park.

Mr Mercer added: ''We looked at all aspects of land use and employment

and came up with a balanced use. That's why we put in some commercial

development -- we don't see that as a dirty word or anything morally

wrong.''

He confirmed that there would be a board meeting at Tynecastle on

Saturday, but said there would be no decision about an appeal to the

Secretary of State until after next week's full council decisions and

discussions with co-developer Jim Glass.