NEWPORT council has refused to change plans for a massive housing development in the Llanwern Corus area - despite protests from three Gwent authorities.

The council has earmarked a development area between the steelworks and the M4 as having a potential for 7,000 homes, and say 1,700 can be built by 2011.

But Blaenau Gwent, Torfaen and Caerphilly councils fear the new housing could damage their economies and undermine their communities.

The protests came when Newport increased its 2001 to 2011 housing forecast from 4,000 to 5,700 homes in the wake of the Corus closure.

The increase is a key part of the city's Unitary Development Plan (UDP).

The three councils fear the revised UDP will lead to a housing market flooded with extra homes, and will ruin their own plans to attract and develop communities, jobs and housing.

Gareth Jones, chief regeneration officer at Blaenau Gwent, said: "This is oversupply.

"Its size threatens housing choice and opportunity. That will affect the sustainability of Valleys communities.

"We are very concerned. The housing number has been substantially increased and some of these houses are on greenfield sites, against the principles of sustainable development."

And Richard Jones, head of business services and community regeneration at Blaenau Gwent, said the new houses would oversupply the region and threaten Valleys opportunities.

He added: "Blaenau Gwent is attracting much-needed private-sector interest in new developments, and we wouldn't want to lose that.

"We wouldn't want to see large-scale planning have a detrimental impact on any part of Gwent."

The housing allocation of the UDP was upped after the end of steelmaking at Llanwern, and as part of an agreement with Gwent councils for Newport to be the 'engine' of economic growth.

But the protesting councils say the increase goes beyond the role Newport would have as a regional driving force.

Torfaen council said the overall strategy to grow Newport was "risky and a threat to the viability of Cwmbran and Pontypool town centres".

Duncan Smith, assistant director of planning and economic development at Torfaen council, said: "Our chief concern is the amount of housing and its justification. We believe the level of housing being proposed by Newport far exceeds what is required at that location.

"We are concerned about the impact this will have on investment in the Valleys.

"Another area that we would like looked at are the transport links if people are going to live in Newport and work in the Valleys."

Caerphilly council said Newport's plans for growth could have "significant adverse effects". They said if jobs cannot be created in Newport to match the homes there will be "unsustainable housing growth and increased commuting".

But Stewart Wild, Newport's head of planning and economic regeneration, said the protested areas of Blaenau Gwent and Torfaen were from "a different segment of the housing market" that have little "overlap" with Newport.

He said Cwmbran and the southern part of Caerphilly borough had more in common with Newport housing, but that these areas were under pressure to supply more homes, and could be relieved by Newport.

Newport cabinet members backed the revised UDP with minor changes recommended for approval at a meeting on Monday.

Mr Wild told them: "The objectors haven't put forward a convincing case."

He stated in a report that the 462 objections "do not warrant a further formal round of proposed changes, which would delay the whole process when there is a need to move it forward.

"They could, however, be offered to the inspector at the forthcoming inquiry as changes the council would be prepared to accept."

Monmouthshire council supported the UDP changes because it could ease housing pressures faced by the predominantly rural county.

The UDP will be finalised after a public inquiry due to open next year.