A MULTI-MILLION pound scheme to transform the heart of Newport's shopping centre has cleared another barrier, the Argus can reveal.

Newport councillors gave the plans for Kingsway the thumbs up last month, but it then had to be considered by the National Assembly.

Wales First Minister Rhodri Morgan could have called in the application and ordered a public inquiry.

But a spokeswoman for the Assembly told the Argus: "A decision has been taken not to call it in."

The Assembly decision was greeted with dismay by theatre-users, who are opposing one part of the scheme.

Under the proposals the front doors of the Dolman Theatre will be bricked up and an alternative entrance provided at the rear of the Kingsway Centre.

But Newport Playgoers, who run the theatre, and other users, have been fighting to retain the present entrance.

Christopher Hill, spokesman for the Playgoers, said: "We are hugely disappointed because that was the last opportunity to be able to resolve things consensually."

He said their next move would be two-fold:

* to continue to seek a meeting with the developers and the council to discuss the access to the theatre;

* to consider very carefully whether to apply to the High Court for a judicial review.

In contrast, Newport council welcomed the announcement. Managing director Chris Freeguard said: "We are obviously very pleased with this news. The £100 million redevelopment scheme will establish the city as a major retail centre.

"The council believes the new shops and architecture will help to attract people back to Newport. The scheme creates new shops exactly where they are needed, supported by good transport links.

"The Rhys Newport scheme includes a 9,000 square metre department store, 7,000 square metre food store, a new modern car park with capacity for 1,370 vehicles and additional pedestrian routes through from John Frost Square to the riverfront.

"The council will now be able to issue notice of its decision to grant planning permission subject to conditions."

Work is due to begin next year and is expected to take three years to complete.

* In the picture: An artists's impression of how Newport's shopping centre could look.