THE vital regeneration of Ebbw Vale could be threatened by plans for massive cost-cutting in Wales' rail services.

Establishing the Ebbw Vale to Cardiff rail link in 2005, and the subsequent re-opening of the line to Newport, is seen as an integral part of regenerating the Valleys town in the wake of the Corus closure.

The Argus is campaigning for the Newport link to be re-opened in 2005, to give people vital access to job opportunities in the city.

But it has now emerged that the Strategic Rail Authority (SRA) 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 outraged rail campaigners, who fear the target could only be achieved with cutbacks.

And Clive Williams, secretary of the Rail Passengers' Committee Wales, told the Argus his group would fight any proposed cuts.

He said: "Too many people perceive Wales as being the end of the line.

"We are in the business of retaining services. These services are desperately needed and play a vital economic role in the growth of Newport as a city.

"There is no room for any complacency. It's important that they are cherished and maintained."

Mr Williams said there has been a 30 per cent growth in rail travel in South Wales in recent years which supports the government's policy of getting people off the roads and onto trains.

He added: "Where you have a rail service with growth like that, doesn't it make sense to expand on it rather than slash it?"

Paul Mckie, spokesman for the SRA, said: "We are asking for cost-cutting options from bidders, it's a standard UK-wide exercise.

"No decision has been made to cut any services in Wales. We have specifically stated that no line closures will be considered as options from bidders."

The concerns are due to be raised at the National Assembly tomorrow.