WELSH Secretary Paul Murphy (pictured) has thrown his support behind a plan to help Newport recover from job losses at Llanwern - amid fears it may not be up and running until the spring.

Alan Howarth, Labour MP for Newport East, said today the establishment of an urban regeneration company, which has the full support of Newport county borough council, was crucial to regenerating the local economy.

The National Assembly is currently examining the plan put forward by the council - but Mr Howarth expressed concern at the time it was taking to set the company up. Mr Murphy gave the plan his full support at Welsh Questions on Wednesday.

The MP for Torfaen said: "I entirely agree that an urban regeneration company for the Newport and South Gwent area would be an excellent idea. Newport council is making proposals regarding the urban regeneration company which the Assembly is considering in detail.

"I welcome the proposals which will service my constituents as well as those of Newport east."

The company would benefit from tax breaks and would be able to lever in private sector money to top up Whitehall cash aid.

Mr Howarth told the Argus: "I am impatient because the earliest we can get this project up and running is the spring.

"But I was heartened that the secretary of state was so emphatic in the way he expressed his support for the concept."

Mr Murphy told MPs that to deal with the heavy loss of jobs following the Corus cut backs at Llanwern and Ebbw Vale the government was providing a package of measures to retrain redundant workers, boost jobs and regenerate the area.

Mr Howarth told him: "The fortunes of Newport are crucial to the fortunes of south east Wales.

"Will he do what he can to ensure that at the very earliest opportunity an urban regeneration company is established in Newport with broad score and depth of resources."

Mr Murphy meets Rhodri Morgan, first minister of the Welsh Assembly, every week and they speak on the telephone virtually every day. Mr Murphy is expected to discuss with Mr Morgan and other Welsh ministers the progress of the project.