DEVELOPERS promising over 300 jobs in plans for a multi-million pound retail centre at Newport say they were shocked to discover the council favoured an alternative scheme.

The Raven Group wants permission for a supermarket, hotel, restaurant and other buildings on the cattle market site near Commercial Road in the docklands area of Pill.

But the city council is looking at plans by Morrisons for a supermarket on the riverside Old Town Dock site less than a quarter of a mile away, where it hopes that a housing project and other building will follow to transform the area.

Raven says a supermarket at Old Town Dock will not necessarily generate further development there and has written to council managing director Chris Freegard asking for "a level playing field".

It is concerned that it had been asked tough questions about its own development but that the Morrisons development had not been as thoroughly scrutinised.

"We have no doubt that a predominantly residential-led scheme would be viable in its own right on the Old Town Dock site and would not need a kick-start from a foodstore," the letter says.

Raven claims to be winning support for its plan. Of 88 letters sent to residents overlooking the site, only three objections were received.

Opinions were divided at a meeting it called to explain the plans to local businesspeople, held on the day after police raided houses in Pill in a drug-busting operation.

Reg Williams, who runs a print shop, said the Raven development would kill local businesses in an area with a bad reputation.

"People will not come into this area because of some of the people here," he said. "One filling station we had went out of business. We need first-class housing to improve the area."

But Trevor Stockton, of Cambrian Fuelcard Services, said the area in the last 15 years had deteriorated into a state that no-one could be proud of. "Any positive development which will bring jobs would be beneficial," he said. "We have a responsibility to the young people here."

The council says it is unable to comment on planning applications until a decision has been reached.