COUNCILS have revealed that more than 4,500 jobs have been created in the Gwent Valleys by the under-fire Objective One funding scheme.

And the news comes as Euro MP Glenys Kinnock hits back at critics of how Objective One funding is being spent.

Speaking exclusively to the Argus, the Labour MEP for South Wales East said that those knocking the management of the massive EU grant scheme had a "political axe to grind".

Her comments followed an outcry over a report placed in the Assembly library which said that £76 million of grants had only created 44 jobs.

Assembly Economic Development Minister Andrew Davies has said that the figure was a computer error and that thousands of jobs have been created.

According to the Wales European Funding Office (WEFO) £22,256,841 of Objective One grants has created 4,605 jobs in Torfaen, Blaenau Gwent and Caer-philly. Nick Bourne, leader of the Welsh Conservatives in the National Assembly, said: "I don't think anyone swallows the computer glitch story. According to Liberal-Labour's own figures, after spending more than £1 bn, they have only managed to create 44 jobs. Objective One funding has been handled dismally."

But speaking from her office in Brussels, Mrs Kinnock said: "A typo in a report is not the real story here. I think some people have a political motivation for running down the scheme at any opportunity. I have been involved in a lot of projects in Gwent that have been created or benefited from Objective One funding.

"I have been paying particular attention to what is happening in Ebbw Vale since the closures there, and this money is already providing real benefits. We are meeting the targets and I know the European Commission is happy with the work that is being done in Wales.

"Of course we must be vigilant and keep making sure the money is getting out there. The economy of South Wales has to be transformed from a heavy industrial base to a range of new industries.

"We have to adapt and that is what is happening, this money is providing training, IT skills and new opportunities. Ireland provides an ex-ample of an economy totally transformed by large amounts of EU money, and I believe that can happen here.

"Objective One is creating quality jobs and real long- term improvements to infrastructure.