Financial negotiations between landowners and the local health board for a new hospital in Cardigan appear to have broken down.

The proposed hospital, to be located at the Bath-house site, is thought to be seriously undervalued by the District Valuer according to landowners, and the authorities refuse to increase their offer.

Paul Davies said, "I am very disappointed that things have taken a turn for the worse for the proposed hospital in Cardigan.

"I would urge the authorities to resolve this matter as quickly as possible. This essential facility needs to progress to ensure these vital services are provided to the local community.

"People in the neighbouring communities are relying on these new facilities. They will be extremely beneficial to people living in the north of my constituency and I would suggest that if these plans fall through, then I see no reason why the authorities cannot consider developing on a site in North Pembrokeshire."