NEWPORT'S planning committee is finally satisfied with an agreement hammered out between the authority and a house builder after the company breached its planning consent.

Persimmon Homes did not raise the former British Dredging site near the River Usk to the required flood defence levels before beginning to build the homes.

However, the company said they were achieving them through their construction methods and agreed to enter into a legal undertaking to ensure homes were not occupied before necessary work was completed.

A £1 million bond would also remain in full force which the council could use if the work was not carried out to their satisfaction.

But at their last meeting, councillors remained seriously concerned about any flooding risk and demanded the company provide a timescale for completion of flood defence work.

Members were told this week that a deadline of December 2008 had been provided.

A report said the most recent survey confirmed the site alongside the river was now at the level required by the Environment Agency.

Officers suggested that given the undertaking, the bond, the clear date and the fact that the council could take enforcement action "the interests of both new residents and existing residents in the area are safeguarded".

The committee resolved not to take enforcement action as long as the undertaking was approved by the council's legal and planning chiefs when provided and complied with.

Persimmon are building 87 houses and 44 flats on the land off Corporation Road. A riverside walk and cycleway/walkway is also being created.