Monmouthshire County Council has quashed rumours that supermarket giant Morrisons is 'backing out' of the development in Abergavenny, after it was revealed that the troubled company has not paid the money promised for the town centre site.

The council have confirmed that a 10 per cent deposit has been paid towards the full £16,750,000 scheme for the 25,000 square foot store, and that a contact is in place for the rest of the money to be handed over on completion.

County Councillor Bob Greenland, cabinet member for innovation, enterprise and leisure, said, "As stated within the contract, Morrisons has paid Monmouthshire County Council the 10 per cent deposit agreed (£1,675,000), and will pay the remainder of the money when the works are complete.

"Morrisons is not in a provisional contact with MCC, it is a firm contract, and they are bound to pay the money to the council by June 2016, or earlier if the works are completed sooner than that date.

"Everyone knows about the struggles of the big four supermarkets which are struggling against the discount supermarkets, but this contact is still in place and the construction will be going ahead before the end date in 2016."

He also addressed the delay in the development, and said this was as a result of the Welsh Government's failure to approve the highways layout for store access.

Councillor Greenland said, "If the issues with the trunk roads had been agreed at the same time that the county council signed the agreement in May, then work would be already underway. is it stands, the developers are awaiting approval from the WGA before work can commence."

As the Chronicle went to Press despite repeated requests there was no comment from Morrisons.