A 'NO-DEAL' Brexit could put the South Wales Metro at risk, a Welsh Government minister has warned.

In a written statement issued on Monday, economy and transport minister Ken Skates said the arrangements involved in transferring the ownership of the Core Valleys Lines to allow the Metro from the UK Government to the Welsh Government, which would allow the Metro to be fully under the control of Welsh ministers, had been in process for the past two years.

"The critical importance of this work should not be underestimated, he said. "The Core Valleys Lines asset is an intensively used part of the railway in Wales.

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"Whilst in size it accounts for just over 15 per cent of train miles in the Wales route, it carries around 56 per cent of all Wales and Borders passenger services each day."

But he said, although the transfer was due to complete by September 20, 2019, this was dependant on agreement by the UK Government's transport secretary by June.

"However, I have been made aware in recent days that the increased prospects of a ‘no deal’ Brexit now threaten this asset transfer process, with potentially far reaching impacts for the wider delivery of the South Wales Metro project," he said.

"As a result of the need to handle a ‘no deal’ Brexit in Whitehall, it is likely that resources within the Department for Transport will be moved from ongoing business within the department and on to other duties.

"Whilst I can take steps to ensure that resources continue to be allocated to this work within the Welsh Government, any reduction in the resources and capacity available within the UK Government to support the asset transfer puts not only the transfer programme at risk, but also jeopardises the deliverability of the South Wales Metro as contractually programmed."

He added the project was dependent on a previously-promised £159 million funding from the European Regional Development Fund, which could no longer be available if the UK leaves the European Union without a deal.

Mr Skates said he had written to transport secretary Chris Grayling asking him to guarantee the asset transfer would continue to be a priority for his department, and had asked to meet with him to discuss ways of speeding up the process.

Previously the UK was due to leave Europe on March 29, but last week MPs rejected Theresa May's deal with the EU for a second time and voted to rule out leaving Europe without a deal, and to ask for an extension to Article 50. The next steps are expected to be set out this week.