PLANS to convert the derelict art college at Clarence Place into luxury flats have been thrown out by New-port council - because of a lack of parking space.

And councillors issued a warning to developers that planning applications like the flats would not be approved just because they fitted the masterplan to regenerate Newport.

Councillors said the proposed 63 flats and swimming pool in the landmark, listed building, which has been hit by a series of arson attacks in the past, would create parking havoc and encourage car crime.

Councillor Peter McKim, deputy chairman of the planning committee, said the blueprint to radically change Newport by 2020 could make a "mish mash" of the city if not properly controlled.

He added: "The masterplan overshadows this application and the developers are jumping on the bandwagon. They are trying to make 'loadsa money'."

The masterplan was put together by Newport Unlimited as a blueprint to create an improved city by 2020, and involves spending millions on a new shopping mall, transport links and housing.

Turning the vandalised arts centre into flats fits the vision to develop the riverbank area and bring new homes to the city.

But councillors were horrified that only 17 spaces would be provided on the site, leaving a shortfall of 46 spaces. They voted unanimously to block the proposals at a planning committee meeting yesterday.

Councillor Harry Williams said: "I'm 100 per cent in favour of saving that building, but not out of desperation.

"This is about the wider development of Newport and these flats are seen as a test case, not as a planning application."

He said if it was not for the masterplan the application would never have been recommended for approval by planning officers.

Councillors said the neighbouring streets could not soak up any more cars and that using the multi-storey car park opposite was unsafe and not a long-term solution.

Gwent police said the car parking shortage would encourage further car crime in the area.

The flats proposed by developers First Investment and Finance would have up to four bedrooms and residents would enjoy an on-site gym and pool.

Peter Williams, development control manager, told councillors the structure of the building made underground parking impossible. Councillor Miqdad Al-Nuami called for fewer flats and more parking on site.