HEALTH chiefs have threatened to abandon a plan for a £35 million hospital at the former Corus steelworks site in Ebbw Vale, the latest twist in a long-running saga over where to build it.

Unless safety guarantees are delivered by the end of this month for a 20-acre plot near the works' West Gate, Gwent Healthcare Trust will switch its attention once more to a site next to the existing Ysbyty'r Tri Chwm, also in Ebbw Vale, a trust report said.

But Blaenau Gwent county borough council, which proposed the West Gate location last September, says site investigations confirm its suitability.

Ysbyty'r Tri Chwm was the trust's original preferred site for the Blaenau Gwent community hospital project, confirmed 13 months ago but set aside after the county borough council belatedly suggested the Corus West Gate site, which had not previously been offered.

The trust and Blaenau Gwent Local Health Board (LHB) approved the West Gate option early this year, subject to detailed investigations into its suitability and safety, with Ysbyty'r Tri Chwm retained as a back-up.

The guarantees have not been forthcoming, although a Blaenau Gwent council spokesman told the Argus: "Two site investigations have been carried out, and both have reported there are no problems with the site that cannot be rectified by normal remedial means. We are satisfied the site will be safe and suitable."

The trust is not commenting - senior officials meet council bosses later this week - but is extremely frustrated by the delay.

The issue was discussed at the trust's recent board meeting and a newsletter for its healthcare partners mentions an end-of-August deadline.

Blaenau Gwent Local Health Board also debated the issue at a recent meeting.

"We need a firm decision on the Corus site quickly, so we can move the project along," LHB chief executive Joanne Absalom said.

Blaenau Gwent community hospital is the centrepiece of modernisation of the area's hospital services, but the wrangle has slowed progress. A previous location earmarked on the Corus site regeneration masterplan was rejected by health chiefs in July 2003 as unsuitable.

The council is keen to have the hospital at Corus as a catalyst for economic redevelopment, and argued that it could be built there more cheaply and quickly than at Ysbyty'r Tri Chwm.