AMBITIOUS plans to transform Pontypool leisure centre are being scaled down, because of lack of funds.

Torfaen leisure chiefs say there is not enough money available to carry out its plans, and are now drawing up a smaller scheme.

The council estimated the refurbishment could cost up to £6.5million and submitted a bid for £1.2m of funding from the Sports Council for Wales last year.

But the Sports Council will only give £1.2m for a £4.2million project - effectively excluding the provision or retention of a four or five-court sports hall at the centre.

And another scheme which the council hoped could bring in more cash for the revamp - contracting out the leisure services so the borough's centres would be run by an outside agency - is also being scrapped

After advice from David Congreve, head of the leisure, youth and culture department, councillors decided that running the leisure services should remain in-house.

Mr Congreve also said the service should not be formally reassessed until 2006-07, some 12 to 18 months after the centre has re-opened.

Lewis Jones, cabinet member for leisure youth and culture, said the decision to keep the service in-house will also ensure the future of leisure services and staff.

He said: "We looked at a charitable trust but we couldn't do one centre without doing them all.

"We also looked at a management company but that would mean staff being transferred and concerns about their terms and conditions. Our preferred option now is to run the leisure centre. We have an uphill battle to secure funding but we are determined to do up the leisure centre and want it to remain in the ownership and under the management of the council."

Rose Seabourne, chairman of the education, leisure and young people overview and scrutiny committee, added: "If we went down the route of externalising the service people would need to make a profit and it would have led to a possibility of increasing prices."

Pontypool leisure centre closes in September for refurbishment.

A revised scheme is now being put together by leisure chiefs and architects to be re-submitted to the Sports Council.

It means 50 per cent of the current sports hall plan must be redesigned to accommodate other indoor uses, leaving a multi-sports area of around the same size as three badminton courts.

This space will be also used for casual sports as well as functions, competitions and use by some clubs.