SUPERMARKET chain Waitrose has quashed rumours linking it with a planned retail development in Hay-on-Wye.

The chairman of town's chamber of commerce had said the upmarket chain was rumoured to be interested in establishing a store at the site of Hay County Primary School.

Powys County Council has announced it is in talks with developers Gaufron over redeveloping the Oxford Road site for retail use.

A spokesman for Waitrose has however confirmed the company is not looking at the site.

John Evans, of Hay Chamber of Commerce, said members were concerned at the possible impact of a supermarket.

He said: "There have been rumours that Waitrose are interested and I understand the site has been offered to various people."

Powys County Council has said selling the site would pay for a new 240 pupil primary school and also fund the development of a new community centre and provide a care home.