Opposition worry over EU funding

European funding is intended to help areas such as Rhondda

Opposition party leaders in Wales have called for answers after reports that European funding may have to be handed back.

Welsh Conservative leader Nick Bourne has written to the assembly government saying he is deeply concerned.

Mike German, leader of the Welsh Liberal Democrats, called it a "damning indictment" of the assembly government.

But the assembly government said half of the funding was already approved and other projects were being appraised.

It comes amid reports that millions of pounds of Objective One funding may have to be returned to the European Commission.

There are concerns that "match-funding" may not be available to draw down the funds.

'Extremely concerned'

Tory leader Nick Bourne has written to Deputy First Minister and Economy Minister Ieuan Wyn Jones.

Under rules for the European aid for west Wales and the valleys, match-funding must also be contributed.

Mr Bourne said : "I am extremely concerned that the first minister is considering returning £40m of Welsh money to Europe because of the lack of availability of match funds."

Welsh Liberal Democrat leader Mike German said: "Sending the money back will be a damning indictment of this 'One Wales' Government."

A spokesman for the Welsh Assembly Government said: "Already, half of the additional funding has been approved, and further project extensions are currently under appraisal for the remainder of the windfall funding."