AN INQUIRY into the controversial Llanwern incinerator plan has been cancelled while the firm behind it decides whether to continue with a planning appeal.

French-based Veolia has stopped the clock on its appeal against Newport council's refusal for planning permission following the decision not to award it planning permission.

As a result, an eight-day inquiry due for July 9 will now not take place.

The move comes after the announcement that Viridor are the preferred bidder for the Prosiect Gwyrdd waste scheme to dispose of non-recyclable from five councils, including three in Gwent.

The company is currently building an incinerator in Cardiff. The Planning Inspectorate has agreed to a so-called 'abeyance period' for four weeks, following a request from Veolia so the firm could review its position in relation to Prosiect Gwyrdd and the appeal.

At the end of this period the appeal could restart, be withdrawn or a further period of abeyance could be agreed.

The Argus previously reported that Veolia was reserving its position on the appeal - it is understood that this has not changed.

If the appeal goes ahead, it will ultimately be a Welsh Government minister that decides whether the matter is given planning permission or not.

Newport council planning committee threw out plans for an incinerator at Llanwern Steelworks last July.

Councillors voted against the move amid enviromental fears and worries it could turn a nearby housing development into a ghost estate.

The developer of the Glan Llyn housing scheme, St Modwen, had themselves objected, calling for the council to show that it was their priority.

St Modwen plans to build 4,000 homes at Glan Llyn over the next two decades.