THE CBI has shunned the idea of a £2 billion Severnside International Airport on the banks of the estuary in Newport.

Responding to a government consultation paper on the future of air transport, the CBI said: "Business is not convinced of the value of developing new sites in the South Wales or Bristol area."

Despite overcrowding in south-east England, the CBI has chosen to back further Heathrow/ Gatwick/ Stansted expansion. It has also called for more development of regional airports like Cardiff to create a "hub and spoke" air transport system.

David Rosser, CBI Wales regional director, said: "We have seen proposals on behalf of Severnside and think they are interesting.

"But we have concerns about their financial feasibility and their apparent lack of support at the Assembly."

Mr Rosser believed that Welsh industry would benefit best from "further development of Cardiff and Swansea airports and improved rail links to Heathrow".

But the leader of the Severnside company, Michael Stephen, said: "A month ago CBI Wales held a meeting to discuss the future of air transport but declined to allow us to make a presentation. Cardiff Airport, on the other hand, was allowed to present."

Mr Stephen also took issue with the CBI's general strategy on air transport.

He said: "We have already seen protests from residents in south-east England to the idea of greater reliance on Heathrow, Gatwick and Stansted.

"The biggest demand for air travel comes from the M4 Corridor. If you built additional air capacity at the western end you could take pressure off the South East while bringing jobs and prosperity to Gwent."

A spokesman for the National Assembly said: "We are broadly in agreement with the CBI and take the view that a bird in the hand is worth two in the bush.

"Cardiff Airport is a reality and has room for expansion - as demonstrated by its recent adoption by British Midland's low-cost operation, bmibaby."

A spokesman for Newport borough council said: "We believe the assembly should consider the development of an international airport at Severnside."

One potential rival to the Gwent plan is the government-backed idea of an airport on the foreshore at Cliffe, in Kent.

But at a projected cost of around £10 billion the CBI thinks it is too expensive. And as Mr Rosser admitted: "It wouldn't be very convenient for Welsh industry, either."