RAIL chiefs have denied that cost-saving measures will threaten the planned Ebbw Vale rail link - despite fears of a reduction in services.

The Strategic Rail Authority is demanding bidders for its new all-Wales train franchise to come up with plans for cost savings of up to 20 per cent.

The move has led to fears that cutbacks could postpone the Ebbw Vale to Cardiff rail link in 2005, and the subsequent reopening of the line to Newport.

The Argus has been campaigning for the Newport link to be reopened at the same time as the Cardiff line to ensure that the Valleys benefit fully from a number of jobs-boosting initiatives set to take place in Newport in the next few years and to help regeneration post-Corus.

Paul Latham, spokesman for the SRA, said: "We asked bidders for ways to enhance their franchises, and to give us a range of options for cost-savings between 10 and 20 per cent. Ebbw Vale is one of those we have asked for improvements and costing options. Line closure is specifically not an option, but other cost-saving measures will be considered.

"A decision will have to be made in the next stage of the franchising process next Spring."

Brian Hancock, Plaid Cymru AM for Islwyn, expressed his concerns that these measures could mean the loss of stations in his constituency.

He said: "I'm not very happy to hear of these cost-savings. In a meeting I had last week with the SRA they mentioned 'value for money' and 'enhancing the service', but not once did they mention anything about cost saving.

"I want to see a complete and comprehensive route of stations on the line between Newport and the valleys.

"They are essential to the service, and cost saving must not mean sacrificing them. "I will be raising an emergency question in the assembly if Sue Essex (the transport minister) does not make a statement."

Llew Smith, Labour MP for Blaenau Gwent ,has reacted angrily to the proposals. He said: "If the railway was postponed it would have a dramatic effect on Ebbw Vale and Blaenau Gwent as a whole.

"A lot of jobs and income into Blaenau Gwent are at stake. If the cuts do go ahead all hell will break lose. It will show the contempt some people have for this area.

"If money can be found to spend millions on the proposed 'pod' transport system for Cardiff Bay, but not for vital transport links in Blaenau Gwent then something is dramatically wrong."

Assembly Transport Minister Sue Essex was set to address the issue today.

A spokesman for the Assembly said the reopening of the Ebbw Vale line is not under threat: "We would certainly not wish to see any reduction in rail services and do not expect to see this happen.

"The SRA have made it clear they are not seeking to close lines."