IT'S full steam ahead for the Ebbw Valley railway after the National Assembly pledged more than £11 million in funding.

The announcement came after it was revealed the Strategic Rail Authority (SRA) is unlikely to provide the revenue support needed to run the new service. Now Environment Minister Sue Essex (pictured) has said that the Assembly itself will provide that funding.

The commitment is for a subsidy of £2.44 million a year, for three years, towards the running costs of phase one of the scheme - which is due to start from Ebbw Vale to Cardiff in 2005.

A second phase to Newport is due to follow in 2008 - but the Argus has been running a six-month campaign calling for the service to Newport to reopen at the same time as Cardiff. The Assembly also announced yesterday that it will provide a shortfall of £4 million for capital funding of the £27.7 million rail scheme.

Ms Essex said although funding from the SRA's Rail Passenger Partnership scheme would not have been required until 2005, it would be "difficult for the SRA to commit to approving this bid".

"In view of this uncertainty and the need for everyone involved in the regeneration of Ebbw Vale to have confidence in the delivery of this rail service as quickly as possible, I have agreed with the finance minister that the Welsh Assembly Government will provide the additional funding sought under this RPP bid," she said.

"Our approach to the situation, which was unexpected, clearly shows that the Welsh Assembly Government is absolutely committed to making these projects happen.

"They are vitally important to objectives, especially developing our public transport policy, reducing our dependence on the car, regenerating communities and opening up opportunities for people to seek jobs while still living in their communities."

Councillor John Hopkins, council leader of Blaenau Gwent council, said it was "fantastic news".

"The Assembly has always had a strong commitment to the project and this announcement demonstrates that commitment not only to the new rail service but to the economic regeneration of Blaenau Gwent.

"I'm confident it will be widely welcomed throughout the community." Islwyn MP Don Touhig said Sue Essex had "put her money where her mouth is". "She is backing us to the hilt and her intervention should now secure this," he said.

Islwyn Assembly member Brian Hancock said he welcomed the Assembly's commitment but was still concerned it seemed as though there was no funding for the link to Newport at the moment.

"Why can't that happen at the same time so we can get a proper integrated transport system?"