BLAENAU Gwent’s assembly member has urged the Valleys to “stay calm and get through the process” as sensitive negotiations into the Circuit of Wales project continue.

Two weeks after the £370 million project’s financial plan was turned down by the Welsh Government for a second time, Alun Davies AM told the Argus there is still hope for the racetrack as both sides work to reach an agreement.

He said it is difficult to say when the new proposal will be submitted, but added: "It’s better to get a good decision later rather than a wrong decision faster."

Earlier this month the Welsh Government rejected a deal asking them to underwrite 75 per cent of the 3.5 mile racetrack project, based north of Rassau Industrial Estate in Ebbw Vale, with local councils underwriting eight per cent.

It was the developers' second financial plan to be turned down after Edwina Hart rejected a deal in April - which asked the government to guarantee the entire investment - because of the risk to taxpayers' money.

Mr Davies said: “At the end of the day, this is the most difficult thing as you can imagine.

“You are seeing what are quite sensitive negotiations being played out in a public domain. Every twist or turn you have screaming headlines or some sort of public reaction which is out of proportion.

“So my focus remains on making the project a success, getting the project up and running and ensuring that we have the sort of financial package which is fair on all concerned.”

Responding to those who have doubted whether Ebbw Vale will ever see the project or the 6,000 jobs promised, Mr Davies said: “I would say to them, naysayers never built anything.

“The only way we will create an industrial renaissance in the Valleys is to set our sights high. There will be always people who snipe from the sides and be negative, but we will be creating work and jobs.

“I think it’s time to allow both sides to conduct negotiations. We need to stay calm and get through this process. Hopefully at the end of the process we will have a strong and robust scheme.”

But Mr Davies said it was "difficult to put a time scale on it".

“A number of different conversations need to take place between officials in the Welsh Government and the development company to focus sharply on the areas which need to be agreed," he said.

Earlier this month, Mr Skates said the most recent resubmitted proposals had not represented "value for money" and told developers any new plans must be at least 50 per cent privately funded.

Mr Davies said: “We have to get a financial package which has significant private investment and public investment which is appropriate in the context of the whole agreement.

“I’m entirely pragmatic about how we reach these agreements. What matters to me is there’s a robust business plan and financial package which will enable the project to get ahead and to see the benefits to the Heads of the Valleys.”