A PUBLICLY-funded regeneration body set up to revitalise Inverclyde has failed to bring jobs to the area according to a new report - which says each new job created has cost the taxpayer �321,000.

A mid-term review of Riverside Inverclyde revealed that the organisation, funded by Inverclyde Council, Scottish Government and Scottish Enterprise - created just seven per cent of its projected 2,600 new jobs target.

The damning report also revealed it has received just one per cent of private sector backing.

The Tele can reveal today that two senior RI figures are set to leave the company as part of cost-cutting and restructuring measures.

Chief executive Bill Nicol is currently serving a six-month notice period before taking up another job but could leave sooner while implementation manager Garry Williamson has also secured another post elsewhere.

When set up in 2006, RI had an overall budget of �93 million and an expectation that a further �300m of private sector investment would be leveraged into the area.

However the midterm review by external consultants outlined that �59m of public funds has been invested with the overall conclusion that there has been 'some good progress so far, but room for improvement'.

The leaked contents of the report has started a war of words between political adversaries, council leader Stephen McCabe, who is a RI board member, and SNP opposition leader Chris McEleny.

Mr McEleny says the public cash has been 'poured away' by the RI board which includes Mr McCabe and fellow board members, deputy leader Cllr Jim Clocherty and Depute Provost, Councillor David Wilson.

But Mr McCabe says the snapshot of figures is 'unbalanced' and insists that RI has done a lot of good work, although admits improvements can and should be made.

In a stinging attack on the performance of RI, Cllr McEleny, said: "After spending nearly �60m of public money, the people of Inverclyde have the right to know what exactly they've got for it.

"This review is extremely disappointing. We were hoping this regeneration scheme would create thousands of jobs, but it's only managed to create a couple of hundred. This information should have been shared earlier with the council.

"Going forward it has been suggested that the council should have better control of the governance of RI.

"The facts are the board already has councillors McCabe, Clocherty and Wilson. Have they been sitting nodding along as public money has been poured down the Clyde?" The council leader hit back at the claims and says the progress of RI has been badly hampered by lack of money caused by the world recession in 2007/08. Mr McCabe said: "Chris has obviously seen this part of the report and saw it as a bit of political capital to make a name for himself and I'm very disappointed by this.

"He has clearly forgotten his SNP colleague, Chris Osborne, was a member of the board prior to the last election.

"There's a lot of scrutiny particularly from the Scottish Government, which has continued to fund RI through this period and must have been satisfied with the progress being made.

"RI has a very strong board and there's a lot of oversight and scrutiny there.

"Chris has chosen for some reason that his perceptions of the failings of RI is to do with councillors on the board. So what were all these other agencies doing if it was failing so badly?

"The reality is that it hasn't failed so badly and RI was set up before the economic recession in 2008 when the economy was a lot stronger." The council has now made a number of recommendations for the future of RI during the final three years of its 10-year lifespan.

Proposals will have to be agreed by the RI board but include retention of the board with a view to restructuring, RI and council staff working more closely together and regular monitoring and reviews taking place.

Mr McCabe said: "It shouldn't be a surprise to anybody that RI hasn't achieved what it set out to achieve. The mid-term review accepts that but says things could be better and I think that is a fair and balanced view.

"When the RI board considers the report next month they will accept that too.

"I think RI has achieved a lot since it was established but absolutely could have achieved more under very difficult and challenging circumstances." The report praised RI for upgrading the overall appearance of the A8 corridor and the river front, the development of Riverside Business Park, which houses Cigna and IBM, plus enhancements to the appearance of James Watt Dock and improvements to parts of Greenock and Port Glasgow town centres.

But Mr McEleny says it has failed on its vital promise of jobs.

He said: "There's obviously visual positives to be taken with the A8 corridor but that doesn't create jobs for people and Inverclyde is crying out for jobs not pathways." The council today refused to release more details about the report and defended the decision to keep it private.

A spokesman said: "The interim review is a pro-active approach by Inverclyde Council, Scottish Enterprise and the board to ensure Riverside Inverclyde is performing as expected.

"Given the commercially sensitive nature of the report it was appropriate for initial discussions by partners to be held in private however we anticipate publishing all non-sensitive elements of the review in due course."