MILLIONS of pounds of European aid could be withdrawn from New-port - because no one is asking for it.

Of the £7.2 million available to Newport for 2000-2002, just under £500,000 has so far been allocated.

Roger Davies, manager of the Newport European Partnership, describes the lack of applications as "extremely disappointing", adding: "If...the situation is allowed to continue then Newport will be likely to lose funding which will either be reallocated elsewhere in East Wales, or will be lost to Wales altogether."

Objective Two funding is granted mainly for capital projects which add-ress issues like the decline in traditional activities in rural areas and problem urban areas.

Objective Three funding is mainly for training and skills development.

Objective One funding applies to West Wales and the Valleys, including Torfaen, Caerphilly and Blaenau Gwent. They qualify because of their lagging economies.

Only three projects, totalling £261,719, have been supported by the Partnership Board for Objective Two funding - despite £5,315,458 being available.

These are with WEFO (Wales European Fund-ing Office) for approval and are for: l A feasibility study into converting the railway station into a centre supporting business start-ups.

* Redevelopment of Ringland Community Centre * Expansion of New-port North West Credit Union into Bettws, Tred-egar Park, Pill, Stow Hill and Liswerry.

A further £1,883,670 is available for Objective Three projects and so far four projects costing a total of £233,521 have been approved.

The partnership wants more applications for enterprise, innovation and development of small and medium companies.

It is also looking for initiatives in urban communities and social economy projects. For more information about making an application telephone 01633 232237.