HUNDREDS of jobs could be created in Inverclyde as the area bids to land a Scottish Benefits Agency centre ahead of rivals.

But the district already faces opposition for the 300 jobs bonanza from Dundee, and possibly other cities and towns too.

The new agency will be created next year to administer social security payments worth £2.7 billion when they are devolved to Scotland.

It will run 11 benefits being devolved to Holyrood, including disability living and attendance allowances, and winter fuel payments.

Inverclyde Council leader Stephen McCabe says the agency could be sited in buildings with surplus capacity, such as Greenock or Port Glasgow job centres.

He added: “If a new building is needed, it could be constructed on the abandoned women’s prison site in Inverkip Road, which the Scottish Government already owns.”

The Scottish Government ditched plans for a women’s prison after spending £7.7 million on designing it, and buying and clearing the former Greenock High ground on Inverkip Road.

The Scottish Prison Service (SPS) still owns the ground, but has not clarified yet what it plans to do with it.

Councillor McCabe says another possible site for the benefits centre could be one owned by Riverside Inverclyde at Cartsburn, across from the Royal Bank of Scotland Mortgage Centre.

He added: “Bringing the new agency here would be a boost for our economy.

There has been a demand for a number of years for Westminster and Scottish Government jobs to be spread around the country, rather than concentrated in big cities. 

“We have a skilled, well-qualified workforce, and we are within easy travelling distance of Glasgow.

“We certainly want to be considered - I am more than confident we can put together a competitive package that the government would be interested in.

“We can find the right site to provide the right facilities.”

A Scottish Government spokesperson told the Telegraph there will be many sites to be considered.

He said: “The transfer of some limited responsibility for social security to the Scottish Parliament gives us a real opportunity to transform the service people receive, and to provide the protection and support that individuals need.

"Our new Scottish social security agency will be the flagship organisation that oversees the delivery of benefits in Scotland.

“We are not yet at the stage of making a decision on the location of the agency, and there will be many potential locations to consider the length and breadth of Scotland.

“We will continue to engage with stakeholders, including local authorities, as the business case for the new social security agency is developed.”