MONMOUTHSHIRE County Council will have to take out a short-term loan to fund the replacement £3,450,000 cattle market.

The news was revealed at a special cabinet meeting last week in a report on the council's commitment over the next three years to capital schemes such as this.

The report stated that the capital receipt from the sale of the Cattle Market site in Abergavenny will not be received until the financial year 2007-08. The replacement market will be built in either Raglan or Llanfoist, but a final decision has not yet been reached.

Cllr Douglas Edwards said: "This figure which is quoted is considerably less than we were told in confidence last year. The realisation from the site has dropped considerably."

But council leader, Cllr Andrew Crump said: "There was no talk then of the added benefit of the library and cinema, now the cost of those is included in that figure. A full breakdown of the figures is available."

Deputy leader Cllr Graham Down said the total level of funds available to them was around £20 million, compared to the £30 million needed.

But the cabinet was committed to capital schemes such as the restoration of the Shire Hall in Monmouth, maintenance of County Hall and their 'access for all' programme.

Other development schemes for which bids have been held because of the tight budget include the £525,000 net cost of the upgrading of Bailey Park, Abergavenny, for which Lottery funding of £3.775 million has been sought, and upgrading the civic amenity transfer stations at Llanfoist at a cost of £1.8 million and Five Lanes, Caerwent at £750,000.