AN illegal Gipsy camp in Newport is threatening a £20million housing development.

Housing association Fairlake is applying to build 200 homes on part of the former Pirelli cables factory site in Telford Street, Lliswerry, but it is feared no one will want to live there because 12 Gipsies are based on adjacent land.

Lliswerry ward councillor John Richards says the camp, which has been there for the five months, is threatening the redevelopment, and fears Fairlake could pull out.

“What company would consider investing millions of pounds in a housing development that is next door to an illegal Gipsy traveller encampment?” he said.

The project is a major part of the city’s regeneration and although Fairlake says it is not affecting the company applying for planning permission, if the Gypsies remain on the site is could have a detremental effect on its future success as the homes will be a mixture of for sale, shared ownership and rented properties.

When asked why it could affect the plan, a spokeswoman for Fairlake said: “It is all about people’s perceptions of having travellers on a site next to their homes.”

Cllr Richards told a council meeting last week the project would create 200 badly- needed homes and hundreds of badly-needed jobs for the city that were being held up by the development, and called on council leaderMatthewEvans to act.

Cllr Evans told the Argus he is looking into the situation and will try to help resolve the issue.

The site Fairlake is to develop is owned by the Welsh Government, which says Newport council is talking to the family.

ANewport council spokesman said the authority is talking to the Welsh Government, a local housing association and the family.

But he added: “The council does not own this land and as such will not be moving the family or taking any legal action on the land owner’s behalf.”

EDITORIAL COMMENT: Concern over site

THE whole debate about where to put a Gipsy camp in Newport has now been rumbling on for months.

We fully understand Newport council’s position that it legally has to find a permanent site.

And we fully understand the views of people who don’t want it anywhere near their homes.

We have said in the past that until the Gipsy community integrates itself more in communities then they will find it hard to be accepted and that is why they face such opposition.

We now report on a group of Gipsies who have moved on to land where a new housing scheme is planned.

That, some say, could threaten the development although as no planning permission is being sought for the site until at least the end of the year, we believe that is just a kneejerk reaction.

Within 12 months that group of Gipsies could well have left of their own accord or by legal means.

That aside, we would not want to see a development that is creating new housing and jobs under any sort of threat and we hope the matter can be resolved in the next 12 months.