Tesco's decision to move its Distribution Centre at Chepstow to Avonmouth has been greeted with "great disappointment" by local civic leaders.

Michael German, Welsh Liberal Democrat AM for South Wales East, described the move as a "real blow for the economy of Chepstow and South East Wales", after speaking with senior managers at Tesco.

"It is a great disappointment that Tesco found no alternative sites in the area to expand their distribution centre. I do hope that every effort was made by the Welsh Assembly Government and Monmouthshire County Council to keep the company's distribution centre in the area."

Tesco's Severn Bridge distribution centre in Chepstow employees 747 local people, the vast majority of whom are resident in Wales, mainly in the Chepstow area.

"My main fear is employees who transfer will have to travel to the new site in Avonmouth and face the £5.40 toll on the Severn Bridge every day, £27 per week. I have already pressed senior managers at Tesco to make a package available to compensate existing employees who face this huge hike in their travel to work costs."

Mr. German added that this will be a key issue for the company to consider: "I want to see the company issue TAGs to everyone concerned or provide a round-the-clock bus service to help people make the move."

Speaking on the impact of the regional economy for Gwent, Michael German said that "when a large employer leaves an area, and in this case the largest private employer on one site in Monmouthshire, the spending of that company with local suppliers and businesses disappears.

"I will be pressing for the Assembly Government and Monmouthshire County Council to do everything they can to seek a new occupant at Chepstow to replace the jobs being vacated by Tesco."

The company's corporate affairs manager, Juliette Bishop, said the relocation was necessary because the company had outgrown its Chepstow base.

She said: "The site at Chepstow is almost twenty years old and provides no room for expansion.

"However, the number of stores the site services has grown considerably in that time and it can no longer meet the current or future demands.

"We have worked extremely hard to find a new site just under nine miles away and the close proximity to Chepstow will allow for all our staff to have the opportunity to take a role at the new facility, keeping more than 750 jobs in the area".