A SUPERMARKET chain has accused a utility company of holding up a £5 million investment which is set to create up to 40 new jobs.

Lidl hoped to open its new shop in Dumfries Place before Christmas but said Welsh Water was holding it "to ransom".

Essential work has to be carried out by the water company before building can begin because a main sewer runs through the site.

Welsh Water defended its position saying it was working as quickly as possible to find a suitable option for a diversion.

It claimed the delay was caused by Lidl paying the cost of a feasibility study.

Planning permission for a multi-million development, including the supermarket, offices and children's playground, was first given back in 2006.

But earlier this year Lidl submitted amended plans for a different part of the site because of the issues caused by the sewer.

A spokesman for the retail company said they would like to have started work already but cannot do anything despite trying to sort it out the problem since January.

"We have paid £25,000 (to Welsh Water) for feasibility works and we have got nowhere with it."

He added that Welsh Water was a monopoly and they could not use their own consultants.

"It has just taken months to do nothing at considerable expense to us."

He explained the water experts had to establish whether any diversions were necessary and, if they were, proposals and timescales for dealing with it.

Pill Cllr Ron Jones echoed Lidl's concerns adding that he wanted to see the site developed.

Welsh Water 'preparing feasibility report'

In a statement Welsh Water said it had been in contact with Lidl since January and was working as quickly as possible to find a suitable option for the sewer diversion.

"There was a delay in the works which was due to Lidl paying the cost of a feasibility study by instalments. The final instalment was not paid until July 27.

"Welsh Water met Lidl representatives on Thursday, August 20 when it was agreed that a feasibility report would be delivered to the company in early September."