Welsh First Minister Carwyn Jones has called the UK Government's decision to scale down Wales' sole Passport Office as "extremely disappointing’’.

Today Westminster officials confirmed the Passport Office in Newport would remain open - following the end of a consultation which originally considered closing the centre.

Home Office Minister Damian Green said 150 jobs will be saved as a result of the Government's U-turn, but more than 100 other posts are expected to be cut.

While Newport's Passport Office is to continue its operations as a customer service centre, it will no longer process postal and online applications.

First Minister Mr Jones, 44, said: "This is extremely disappointing news.

"Whilst we note the intention to retain a small customer service facility at Newport and the possible transfer of some posts, this decision by the UK Government now leaves Wales as the only region of the UK without a fully fledged passport office.

"The Newport Passport Office is also a significant employer in Newport, and the loss of these valuable jobs will have a huge impact on the city and the local economy.’’ Earlier today, the Government confirmed, after an 150-day consultation period, Newport's Passport Office would remain open.

Around 300 people were employed by the National Passport Office when the decision was made to close it entirely in October last year.

Of the 150 jobs that will remain, 50 will work in a customer service centre, while 100 will run a central Identity and Passport Service customer complaints and correspondence base.

The decision to cease postal and online applications is expected to see at least 120 jobs cut.

Home Office Minister Mr Green said: "I appreciate this will be a difficult time for staff in our Newport office, but we have sought to reduce the impact of these decisions as possible whilst making the savings and efficiencies we need to.

"The Identity and Passport Service will continue to work closely with other Government departments, the local authorities and other agencies to find alternative opportunities and provide support to those people affected.’’ The decision to keep the office open has been welcomed by Welsh Secretary Cheryl Gillan, who said the UK Government had "listened and responded to the concerns of local people’’.

However, a number of Welsh politicians were less than pleased with the result.

The Assembly's presiding officer Rosemary Butler, AM for Newport West, called today a "black day for Newport’’.

She added: "If it hadn't been for the magnificent campaign by those opposed to the cuts the news would have been very much worse.’’

And Plaid Cymru MP Jonathan Edwards said the matter was proof of why Wales needed devolved powers for Passport Offices - stressing that Newport's Passport Office was worth around £25 million to the local economy.

He said: "This is a decision which was made in London and not by the people of Wales, who want to see a fully functioning passport office in their own country.’’ "Unless responsibility lies in Wales, we have no defence against decisions made in London.’’