THE proposed loss of Newport’s passport office could put the city at risk of economic decline, the council leader claims.

Cllr Matthew Evans says a study carried out on behalf of the council and Newport Unlimited found the proposed closure could cost Newport £36 million, and has written to IPS chief executive Sarah Rapson asking her to reconsider proposals to fully or partially close the site, which employs 300 people.

Research undertaken by economic analysts AECOM predicts the Newport’s economy could suffer a loss of £11 million a year as the result of lost jobs, £1 million a year in lost trade and a total £25 million from a loss of future investment.

Cllr Evans said a decision to close the office would greatly impact on Newport’s chances of encouraging inward investment to the city centre, which was already in the process of losing anchor stores like Marks and Spencer.

The loss of a large employer like IPS, he said, would send out a negative message to investors and put the city at increased risk of economic decline.

Cllr Evans said even if a small front office remained, staff who are made redundant - who were previously praised by former passport minister Meg Hillier to have exemplary knowledge, expertise, and exceptional customer care - would find it extremely difficult to find suitable alternative employment.

He said this would add to the UK’s already overburdened welfare benefits system, adding that Newport already had a higher than average unemployment rate of 9.9 percent.

He added said reducing staffing levels at one of Newport’s largest and well respected organisations would have a detrimental effect on the city’s reputation to win and retain future jobs.

The council leader said the authority was still waiting on the results of an economic impact assessment carried out on behalf of IPS and criticised an equality impact assessment, which failed to look at the needs of customers and made no reference to how Welsh language services would be provided, which is required under the Welsh Language Act.

Last night, less that 24 hours before the consultation was due to end, the IPS confirmed it would extend the consultation period until March 18 in response to requests from interested parties to give them further time to complete and submit their final representations.

A decision about the closure will be made after this time.