Members of the Assembly's Opposition parties have spoken up in support of Ron Davies's leaked letter criticising the Labour administration's handling of Objective One funding.

Mr Davies received the support of his constituency party chairman Elwyn Morgan at a branch meeting on Friday night, following his critical comments.

Tory Assembly leader Nick Bourne told BBC News Online that Labour's efforts to seek match funding for Objective One funding were a "pantomime exercise".

Mr Bourne called for an industry leader, such as John Harvey-Jones or David Rowe-Beddoe, to take full control of the running of Objective One.

He also urged the setting up of an Objection One Information Bureau with a hotline for business queries.

Plaid Cymru's economic development spokesman Dr Phil Williams also called for improvements to the way queries are dealt with.

"There is no machinery for anyone applying for any money. I get contacted all the time by people with schemes that want to be supported and at the moment, there is no way they can proceed.

"I find it frustrating that so many politicians in private recognise the situation - this is Wales's biggest opportunity in my lifetime to make a breakthrough and it is so important to get it right."

Liberal Democrat Jenny Randerson, AM for Cardiff Central, said Ron Davies's comments were "refreshing and honest".

She said that while Labour failed to extract match funds from Westminster, precious time was being lost to make use of the regeneration funds in south and west Wales.

'Independent line'

"Ron Davies is in a strong enough position to take an independent line and I hope that it will be followed up by other Labour members.

"I am very pleased that it is becoming an upfront issue," she told BBC News Online.

Mr Bourne said Objective One was the most serious issue facing Wales and that Labour had failed to grapple with it.

"I am sure there are some people within Labour that take the Ron Davies view and what he is saying is absolutely correct, but just in terms of match funds, but the whole issue," said Mr Bourne.

'No spare funds'

"There are no spare funds in the National Assembly's budget that could be used for match funding."

"We should just tell them to get on with it - it should not be a party political issue.

"Cardiff Bay Development Corporation is an example of something that was taken out of political control and made a success and we should have learned the lessons from that."