Rejoicing over city status for Newport may have died down but the work to capitalise on it continues. And could it also mean more for areas outside the city boundaries? JACQUI CARROLL reports

PROMOTERS of Cardiff's bid to become a European city of culture in a few years know that regional activities outside it will be an essential part of its argument.

In the same way, Newport's city status could have repercussions beyond its boundaries.

It was always the hub of Gwent and with the decline of heavy industry in the Valleys, has truly become the region's 'capital'.

It seems likely that interest will be created in Newport first and in its surroundings afterwards. And already there has been a sustained knocking at the door.

Newport and Gwent Enterprise is receiving a "huge" amount of feedback from firms looking to expand into Newport, according to its business development manager, Jon Hughes.

"This is as a direct result of city status," he said. "People seem to have much more confidence in Newport now we are a city.

"As the foremost business support agency in Newport, we feel that city status will have a huge, positive economic impact on the city and the surrounding area, which is something most people forget.

"We deal mostly with the small to medium enterprises and we are certain these companies will benefit as well as the larger businesses."

There could be as many as 2,000 jobs created on the back of the city status decision. Ben Hoppe, chairman of structural steel company Rowecord and chairman of the former city status committee, is looking forward to more companies investing in the area.

Mr Hoppe started his company 33 years ago and now employs 900 people.

"City status will mean a big difference to us, bringing in more money and people and giving the area a high profile," he said.

"The Ryder Cup has brought a huge amount of interest and people in America now know where Newport is - foreign interests see a city totally differently from how we see it."

Pleased with his successful campaign results and looking forward to a bright future, he said plans were already under way for improvements.

"I am positive the changes will do a lot of good for this company," he said. "There are new buildings going up even now. We are convinced a great number of people in Newport will benefit and that we will be able to create more jobs."

With an injection of money from the National Assembly for Wales and the Welsh Development Agency, Newport is to introduce an urban regeneration programme.

Part of its initiative is to look at individuals who are training in new skills after being made redundant. An enterprise scheme will offer support and advice to budding entrepreneurs.

As well as realising the benefits to his and other firms in Newport, Mr Hoppe is keen to extend the urban regeneration programme to other parts of Gwent so they can become self-supporting.

"A lot of people do not realise that the Valleys bring a lot of people into Newport and we are trying to promote entrepreneurial activities in these areas."

Although optimistic about the commercial future of Newport, Mr Hoppe is concerned that people will expect to see instant changes.

"It will happen but people will need to be patient," he said. "The changes won't happen immediately.

"It will take a period of time."

In the next six months the top floor of Newport's provisions market is to be developed as an open-plan area suitable for business exhibitions.

The space will be allocated to firms to rset up stalls and have a person on site who will be able to explain what the business is about and answer any questions.

The pilot scheme, which is being funded by the Welsh Development Agency, will give busy prospective contacts a chance to see what Newport has to offer in the way of employment and industry.

David Russ, the N&GE chief executive, said: "I think it's about getting the balance right between inward and inside investment.

"There has been more inward investment over the last two years and the inside market has slowed down.

"It is now becoming much more competitive. There have been great changes for Wales to mend its primary investment in recent years.

"Newport is a strong commercial city in a strong region. As it grows in strength, it is important to see the rippling effects going out to the other areas.

"If the scheme proves to be a success there are plans to move it out in to other parts of Wales."

But Janice Gurmin, finance and administration manager of telecom cable manufacturer Ringtel, in Cwmbran, is doubtful about the regional spin-offs.

"I'm happy for Newport, but I cannot see it attracting industry in to this area," she said.

"Why should it? I think it will only benefit Newport as a commercial entity.

"There's a lot going on in the Valleys.

"There is a lot of entrepreneurial activity going on but on a small basis. - "It is difficult to get the funding and advice we need, but we are doing our bit. There is more going on outside Newport than people realise."