THE organisation which represents Wales’ small businesses has warned the proposed South Wales Metro scheme may not provide an immediate solution to the region’s problems.

The long awaited metro will include a network of trains, trams and buses running between cities, towns, villages and other important sites in the region including Newport’s Royal Gwent Hospital and the Celtic Manor Resort.

Expected to be mostly completed by 2023, exhibitions were held across Gwent in February with interactive maps of what the transport links will look like.

But a report from the Federation of Small Businesses Wales published today has warned that despite their support for the scheme, the metro is “no silver bullet” for the area’s economic problems.

The report, by researcher Dr Mark Lang, found similar projects elsewhere in the world have not necessarily produced positive regeneration effects. He said transport infrastructure investment alone cannot address the underlying problems of the region.

“Context is critical, and in that respect South East Wales, and Wales more generally, needs to have a more open and honest debate about what sort of country we want to be and what is important to us,” Dr Lang said.

He has called for more research into how towns and cities are interconnected and how small business growth can be supported.

But Newport East AM John Griffiths said: “I think like any other project it has to be implemented effectively, it has to be top quality.

“I think it will be very good for all businesses in the South Wales area – big and small – as what it would do is provide a much bigger workforce for employers anywhere in the area.

“If people can travel quickly to any part of that geographical area then any business can have these people as employees and they can grow their businesses.

“It also works the other way. It means people can get to any part to access employment opportunities.”

He added: “I think it has a very strong consensus behind it.”

Phil Edwards, chairman of the Blaenau Gwent Business Forum, said: “I have got a feeling it will take a long time for the valleys to get any benefit out of it.

“I think Cardiff will benefit, I don’t think the valleys will. It might do the same as the trains and take people away from the valleys.”