THE first step towards the creation of a City of The Valleys has been taken - but at least two councils have reservations.

Caerphilly, Torfaen, Blaenau Gwent and Merthyr Tydfil have all agreed to fund a feasibility study into the £500 million proposal to revitalise the Valleys.

They are now waiting for decisions from Bridgend and Rhondda Cynon Taff, but will definitely go ahead.

Councillor Lindsay Whittle, leader of Caerphilly council, said: "It's an exciting project. "It has given this authority a long term vision and a plan for the next 20 years." Councillor John Taylor agreed, saying: "For too long the Valleys have just been a route for traffic to pass through to Cardiff and Newport. It is time for the balance to be redressed."

Torfaen also supports looking closer at the ten-year regeneration scheme, which aims to provide retailing, leisure, and educational facilities fit for a city. Councillor Brian Smith, leader of Torfaen council, said: "It is interesting, stimulating and bold.

"If you take the six authorities we have a population of 600,000. We will set up a study group to look at areas such as transport, industry and sport."

But there were cautionary voices in Blaenau Gwent council, although Caerphilly councillor Colin Mann insisted they had agreed to contribute to the feasibility study. A Blaenau Gwent spokeswoman said: "The authority will require a great deal more information that would demonstrate it won't duplicate regeneration strategies or consume scarce resources."

She stressed the success of the partnership spearheading the Corus recovery package involving Monmouthshire, Torfaen, Newport, Blaenau Gwent, and Caerphilly, and said Blaenau Gwent was collaborating with the National Assembly on a similar - and competing - scheme for all Wales.

A spokesman for Bridgend council said the plan had been discussed 18 months ago, but no decision had been taken on it recently.

He said: "It certainly isn't on the agenda for cabinet discussion in the next two months." The project is the initiative of Roger Tanner, strategic planning and urban renewal manager for Caerphilly council.

It will involve funding from central government if it progresses beyond the planning stages, but is not intended to interfere with the Corus recovery package for the five counties.