A public inquiry began yesterday into Monmouthshire Council's rejection of a proposal to build 340 homes in Sudbrook.

The council refused outline planning permission for the residential development on the site of the former St Regis Sudbrook Paper Mill in October last year, amid concerns that the development would treble the size of the village and was of an 'extraordinary scale'.

The paper mill closed in 2006 after operating for nearly 50 years and was demolished three years later.

The proposal included new roads, infrastructure, parking, a network of public spaces and landscaping.

The applicant, Harrow Estates Plc is appealing against the decision at the four day inquiry, led by Planning Inspector, Emyr Jones at Wales 1 Business Park, Magor.

At the hearing Miss Morag Ellis, QC, representing Harrow Estates Plc said in her opening statement; "It is clear that the site presents a golden opportunity to bring forward sustainable development which will balance and integrate social, economic and environmental issues as sought by Planning Policy Wales."

She said the redundant buildings on the site are an eyesore visible from the Wales Coast Path and that the developer would contribute up to £300,000 to fund improvement bus services, and green travel vouchers for future residents.

Richard Brown, on behalf of Monmouthshire Council, told the hearing that the infrastructure is not there with only a hairdresser, church and non-political club.

He said:" There are 150 homes in Sudbrook and the nearest secondary school and town centre is 3km away in Caldicot."

He said there is a lack of services, with only five buses a day and an hour's walk to the train station.

In his evidence, the council's head of planning, George Ashworth, said building such a large number of homes on the site is 'unsustainable'.