NEWPORT is ready to serve up a slice of £7.2 million European cash - but no one wants it.

Now the council has learned from a consultant commissioned to look at the riddle that it has only itself to blame.

Only one tenth of the Objective Two and Objective Three funds has so far been allotted to projects.

Concern over the poor response to, and uptake of, schemes led the baffled council to enlist the help of consultant Richard Essex who gave a presentation to a meeting of the Cabinet.

He said the council was having difficulty giving the cash away because:

* It is undergoing a total restructure of the way it operates;

*There are not enough staff in the council's European unit to process applications and develop new EU initiatives;

* Council departments are not working together to maximise opportunities to gain Euro funding;

*Relationships between the council and other key bodies within Newport need to be improved;

* There's a lack of interest from potential project applicants;

* Europeal policy and funding programmes are not given a high enough profile.

Councillor John Jenkins, cabinet member for employment and development, claimed that WEFO (Wales European Funding Office) were also to blame for not approving schemes which they had put forward.

He pointed out that a "perfect" scheme approved by both the council and the Local European Partnership was still awaiting approval from WEFO because there had been just one objection from a resident out of a consultation with 300.

To make the most of funding opportunities and identify further funding, Mr Essex advised increasing the European unit's staff from three to five, and establishing a project management structure to deliver a European strategy and the approved structural funding programmes.

He also advised maximising the use of external specialist expertise from public, private and voluntary sector partners, within the Local European Partnership.

Objective Two funding is for capital projects, such as new buildings, and Objective Three for training, skills and development.

* Anyone interested in applying for Objective Two or Three funding should contact the European unit at Newport council. Write to European Unit, Civic Centre, Newport, NP20 4UR, telephone 01633 232237, or e-mail European@newport.gov.uk