'Gwent is NOT missing out'

The Assembly administration is coming under fire for "mismanaging" funds that are designed to transform the Gwent valleys' economy.

But yesterday Rhodri Morgan told the Argus: "It has always been government policy that no worthwhile project should fail because of a lack of match funding. It is also the case that the Assembly would only intervene as a last resort. So far only 7% of projects have had to use the Assembly administration's Pathways to Progress match funding.

"This really is a non-story. Obviously at the halfway point of the fund and with our strategic approach not all projects will succeed, but we are making real progress, progress recognised in Brussels, where we were praised for the administration of structural funds."

But South-East Wales AM Mike German said a lack of match funding was causing many projects in Gwent to fail.

Mr German said: "It's a problem that is affecting all the areas receiving structural funds all over Gwent.

"We're halfway through the funding period and we have new programmes and existing programmes in greater numbers putting pressure on match funding. The Assembly administration has not kept up with demand, and now projects are failing. I have heard the Pathways to Progress scheme is in turmoil, with projects stacking up.

"Either the Assembly must plead a special case for Wales at the Treasury or use some of its overspend.

"Otherwise we could lose out on this once-in-a-lifetime opportunity to transform Gwent's economy."

Plaid Cymru's South-East Wales AM, Jocelyn Davies, said council-funded projects were being hit hardest.

Ms Davies said: "Local government has said that £50 million in match-funding commitments have been withdrawn by the administration across Wales. Local government has wasted time and money developing projects to find no match funding is forthcoming.

"They say that no worthwhile projects will fail because of a lack of match funding, but that is exactly what is happening."