THE archaeological trust that recovered Newport's medieval ship will this week issue a writ against the city council, claiming it is still owed more than £100,000 for the work.

The Argus reported at the beginning of March that the Gwent and Glamorgan Archaeological Trust (GGAT) was in dispute with the council over £102,000 for work done after being called in to remove the15th-century ship's remains from the muddy banks of the River Usk.

At that time, the trust narrowly avoided having to declare itself bankrupt after the council agreed to pay out £30,000 for jobs agreed under a separate contract.

But the trust was forced to make three of its 20 staff redundant last week, and GGAT chairman Bob Trett fears there may be more job losses imminent if the council doesn't pay the outstanding debt.

Mr Trett said: "Making colleagues redundant was the last thing we wanted to do - not least because of the high quality and dedication of the workers we lost - but the decision was forced upon us in order to save the trust.

"It's possible there will be more redundancies because of the council's failure to pay what we believe we are owed.

"As well as providing advice for local authorities and bodies such as Cadw (the historical monuments organisation), we bid to provide archaeological assistance for major development schemes.

"This non-payment is affecting our ability to bid for those schemes."

The dispute concerns a work period which extended five weeks over an agreed contract at the end of last year - an extension that GGAT claims the council agreed to.

GGAT's solicitors wrote to the council on July 18, telling them: "You should accept this letter as notice if payment of £102,105 is not paid within seven days - proceedings will be issued without further notice including claims for for late payment and interest."

The letter contains an assurance by Cardiff barrister Theo Huckle that the trust has "a watertight case".

The solicitors have not received a response from the council.

Simon Rutherford, chairman of campaign group Friends of the Ship, said: "GGAT staff were key to the recovery of the ship, it's very sad that the disagreement has reached the stage where jobs have been lost."

Newport council has previously said it cannot comment on any on-going legal dispute.

Glyn Jarvis, Cabinet member for leisure, culture and arts with the city council, said this morning: "While a legal case is pending, I am unable to comment."