THE chief executive of an investment firm owned by Gwent's richest man is to head up a taskforce to examine why firms are struggling in Newport city centre.

A letter to Assembly members obtained by the Argus said Simon Gibson OBE, chief executive of Wesley Clover, has agreed to head up the Welsh Government's business development project.

He will act as chairman of a steering group of six business people and others for the scheme, which will examine how housing can regenerate the shopping district.

Wesley Clover is an international investment vehicle for billionaire Sir Terry Matthews – its head office is in Canada but its European office is based in Newport.

Mr Gibson is also chairman of the Newport-based Alacrity Foundation, which aims to nurture future entrepreneurs and is funded by the Welsh Government and Sir Terry.

A top officer from Sir Terry's Celtic Manor Resort is also on the board, as well as a graduate from Alacrity.

Mr Gibson said yesterday: "I'm sure we can make a positive contribution by identifying the city of Newport's strengths and opportunities.

"We hope we can create a consensus around tackling the issues of the regeneration of the city centre and put action plan in place, so the city can realise its true potential."

The project was set up in the wake of a series of shop closures in Newport city centre, and came following lobbying by Newport council leader Bob Bright.

A study by the Argus in March found a quarter of shops lying empty, with big names such as Marks and Spencer having moved out of town.

It will look at the barriers to firms' growing in Newport while probing what opportunities there are for developing businesses.

The letter to AMs from economy minister Edwina Hart says a senior official has been allocated to support the group's work.

The role of housing in the city centre project will be critical to regeneration and the project's success, Ms Hart wrote, saying she expects the group to work closely with the Welsh Government's housing department.

A first meeting of the group is expected to take place this May.– the project will run for 12 months with a report expected within the first six months.

The following six months will see the project putting its ideas into practice.

* THE steering group's members are: - Mark Barry, transport consultant, M&G Barry Consulting - Ian Edwards, chief operating officer of the Celtic Manor Resort - Professor Julie Lydon, vice-chancellor of the University of South Wales - Ben Milsom, a graduate from Alacrity.

- Simon Powell, chief executive officer of Cardiff-tech firm Eysys - Sian Wilton, head of Boots UK's Wales and West division.