AN ARCHAEOLOGICAL body responsible for digging up Newport's medieval ship claims it is in danger of going bankrupt within weeks due to a dispute with the city council.

As exclusively reported by the Argus, Gwent and Glamorgan Archaeological Trust (GGAT) is involved in a row with the city council over payment for work on the ship. GGAT has now ordered its solicitors to issued a writ agai-nst the authority for £102,000 which it claims it is owed.

The council denies owing the money and says it has tried to meet GGAT about the issue. The trust alleges the council is also refusing to pay for four other jobs relating to the ship, amounting to £31,000, agreed under a separate contract, while the argument continues. The Argus understands the council has now threatened a counter claim for £50,000 per week costs that built up with Turners, the firm building the theatre and arts centre, after the project overran.

A spokeswoman for the authority said it was obliged to ensure "efficient and effective use of public money" and act in the best interests of Newport.

Trust chairman Bob Trett (pictured) said it had to extend its overdraft in order to pay salaries in March and could be facing insolvency within weeks.

"If the Trust doesn't receive £31,000, we could go bankrupt. The council has been informed of that fact, but is refusing to pay the money while we are in dispute over the larger sum.

"We have 20 dedicated staff that worked on the ship in all weathers and could now lose their jobs. That is why I'm speaking out as an individual."

Simon Rutherford, chairman of campaigners The Friends of Newport Ship, said: "We urge the council to resolve the issue as quickly as possible."

He said the trust going bankrupt could jeopardise archaeological policy and works throughout SE Wales.

He added: "We are concerned that both the short and long-term future of the ship is in question. There's no archaelogical plan in place to manage the ship."