The council are unhappy that the Partnership hasn't apologised
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A town council has withdrawn thousands of pounds worth of funding from an organisation which described its councillors as "duds"
The comments emerged in an ideas exercise held by the Welshpool Town Partnership - a body set up to stimulate the economy and promote the interests of the mid Wales community.
Twelve members of the partnership held an ideas session where they carried out what is known as a SWOT analysis - examining strengths, weaknesses, threats and opportunities.
Their list, which ended up in the hands of Welshpool Town Council, said: "Dud councillors, some of them living in the past, town council led by town clerk."
It went on to say: "Relationship between the partnership and council will result in failure."
What was intended as in internal exercise then went horribly wrong when the town's mayor, Shane Squibb, who is also a member of the partnership, was sent a copy of the list.
Councillors then decided to sever all administrative contact with the partnership; withdrawing a town council representative from the group, and cutting off £7,500 of funding set aside each year.
"The partnership can still apply for funding like everyone else by writing to us and we will then consider their application," said Cllr Squibb.
"I am very saddened by this. This is a personal criticism of councillors, and, what is worse, they even failed to apologise after we sent the partnership a letter asking them to explain themselves."
The reply sent by the town council said: "If such anonymous derogatory remarks were not enough, the partnership compounds the felony by publishing them and placing them in the public domain.
"The man in the street can be forgiven for thinking that the SWOT analysis is the official view of your Board."
But the Welshpool Town Partnership has refused to apologise, saying the analysis was not intended for the general public.
Isabel Williams, the partnership's project development officer said: "This is a case of misunderstanding and interpretation after a marketing exercise by our members.
"We are upset that we can't sit round a table with town councillors to mend bridges and move forward."
The partnership's board will discuss the situation at a meeting on Thursday 11 December.