Plans for the first Welsh language daily newspaper have come under the microsope in a new report.

Dr Tony Bianchi was commissioned by the Welsh Language Board, at the request of Heritage Minister Rhodri Glyn Thomas, to conduct a review of the Welsh press.

The launch would require up to £1m of public money - probably from the Welsh Assembly.

He took an in-depth look at whether the planned launch of Y Byd (The World) would work in the long term.

Dr Bianchi's report said: "The viability of a Welsh-language daily newspaper has not been fully demonstrated nor can it be fully demonstrated on the basis of market research or the performance of comparable initiatives elsewhere.

"Dyddiol Cyf's (owners) project is also very ambitious in terms of previous and current performance of Welsh-medium titles.

"However, it has made a strong case in principle, can point to high levels of interest across its target market ... and offers a cost/benefit ratio broadly consonant with other minority language publications of similar scale.

"It is generally agreed that a successful project can bring benefits to the whole sector; a compromised, half-hearted effort will cause it serious damage."

The One Wales pact – which brought power to the Labour-Plaid Cymru coalition at last year's election – contained a pledge to support a Welsh language daily newspaper.

Aled Price, editor of Y Byd, said: "I think it's a fair and balanced report and we're eagerly awaiting the view of the minister at the Assembly Government and what support they are able to give to a daily paper.

"The report gives quite a few positive recommendations for the Welsh language press.

"We think it's a positive step and it does ask some questions as well.

"We welcome that and it's stimulating debate.

"We don't see it as a blow, we see it as a step in the right direction."

An initial target of selling of £300,000 worth of shares to individuals has been put forward to the Assembly by the team behind the paper.

A further £150,000 start up grant has been obtained from local government and the Welsh Assembly.

But a first year Assembly grant of between £600,000 and £1m would be needed along with significant advertising.

It is hoped the paper will attract 5,000 subscribers and be up-and-running before the end of the year.

The original launch date of March was put back pending this report.

The paper would contain local, national and international news including sport, business and politics and be complemented by a full website service.

It is planned to have 24 full-time staff working both at their HQ in Machynlleth and around the country.

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