AGENCIES helping Newport workers following the devastating LG Philips Displays job losses should put funds into a number of projects, Welsh Secret-ary Peter Hain said yesterday.

Mr Hain, (poictured) speaking at Welsh questions in the House of Commons, told MPs that public money should be dispersed on a number of projects rather than concentrated on one big project.

The electronics firm announced the closure of its Newport plant last month with the loss of 870 jobs - a massive blow to the city still reeling from the end of steelmaking at the Corus plant in Llanwern.

Mr Hain told Welsh MPs that the LG Philips Displays closure was a "disappointment". But, he said: "What it shows is that what we should do is disperse our investment support across a wider base of economic activity rather than concentrating it in one project." That echoed Assembly First Minister Rhodri Morgan's view that the LG story was one of "putting all our eggs into one basket".

During the Commons debate, Mr Hain came under fire at Welsh questions from Tory shadow Welsh secretary, Nigel Evans, who said that instead of "swanning" around Europe Mr Hain should do more in Wales.

Mr Evans said: "Instead of swanning around Europe selling out British interests on the European convention, he should be spending more time listening to the voice of manufacturers.

"Manufacturing is in melt-down in Wales. This government must act before thousands more jobs are exported to Europe."

Mr Hain said the LG project, which promised 6,000 jobs, was created when William Hague was Welsh secretary with a cost to public funds of £247 million.

However, despite the announcement which he regretted he insisted: "Welsh companies are doing better than British companies."

Yesterday, we revealed that the National Audit Office is investigating the issue of the LG grants and whether funds should be recouped.