NEWPORT businesses gave a cautious welcome to the news that plans for a £100million new shopping centre have taken a major step forward.

Yesterday the Argus revealed that five top developers are vying to back and build plans to transform the city's shopping with a Debenhams superstore, restaurants and extra shops.

The council and regeneration experts Newport Unlimited have asked the five firms to draw up plans by January 31, 2005. And by May 31 they hope to have picked one to carry out the development.

The council believes the revamped shops - which are likely to cover John Frost Square and the bus station area, but not the bulk of the Kingsway Centre - are essential to Newport's regeneration.

But Charles Ferris, owner of Ferris's Cafe, Upper Dock Street, said: "I'm concerned how the small trader will be treated in plans like this. "We welcome investment and Newport needs it, but part of Newport's charm is its mix of large and small traders. That should be preserved. We don't need another cloned high street."

And newsagent Paul Bartlett, owner of Kingsway News, said: "The city needs this but many shops still don't know how they will be affected.

"The plan to redevelop shops has been hanging around for years. It's going to be another five months before we find out who the developer will be."

Newport Unlimited drew up 'taster' plans of the development that included a smaller bus station. While the final plans may differ, Trevor Roberts, managing director of Newport Transport, said: "I shall lobby the chosen developer to consider the bus station. I hope any plans include a better station and waiting area.

"It's encouraging that developers are interested but it still seems a long way off. We are desperate for something to happen but there are no hard plans on the table."

On Tuesday the cabinet was given an update on the shortlisting process. Councillor Ron Jones, cabinet member for transport and sustainable development, said: "The cabinet was really pleased to be getting on with these plans. There's no doubt the city's shopping area needs improving but the concept has been hanging around for so long now.

"Debenhams is still the key to all of it. As long as they are on board it will go ahead."