THE Welsh Government’s decision to use almost all of its early access borrowing powers on the M4 relief road was “not financially sensible”, Deputy Prime Minister Nick Clegg told the Argus on a visit to South Wales today.

Welsh ministers can borrow £500m a year under new financial powers devolved to Wales.

But Mr Clegg said he said he would rather see a cheaper, less environmentally damaging route than the £1bn ‘black route’ to the south of Newport.

He said: “It’s the Welsh Government’s own decision and they are free to take it. But we think committing pretty much the whole of the borrowing powers on one piece of road is not financially sensible.”

After launching the Welsh Liberal Democrat election campaign at Panasonic Manufacturing in Cardiff, he said the Labour party in Wales had become “complacent”, and should be held accountable for a health service which was leading people to seek treatment across the border.

“I wish no-one felt the need to do that,” he said. “Of course it’s better for people in Wales if the health service was adequate and people were properly looked after and didn’t need to go elsewhere.

“I think Labour does need to be held to account for the shortcomings in the health service in Wales. There clearly do seem to be differences. That doesn’t mean people who work in the NHS in Wales don’t work extremely hard.”

He added: “I don’t think it’s healthy in any democracy if any party becomes as complacent as Labour has in Wales. It’s important to have an alternative. I always believe in a positive vote.”

Looking back at the last budget before the election, in which chancellor George Osborne promised a cut in the Severn Bridge tolls, he said: “We are the only party that says we will abolish the tolls when they come into public ownership. I pushed for a reduction very hard. It is a step towards the long term destination. It does seem not to be fair to have these charges in place, when it is an arterial route in and out of Wales.”

He would not be drawn on potential coalition partners after the election on May 7, saying: “Personally, I don’t think there’s any point talking about how parties want to measure up the curtains in Westminster. I don’t think it would make sense for the Liberal Democrats to help put UKIP in charge of Europe, in the same way I don’t think it would be helpful to put the SNP in charge of the UK.”

He said Labour or the Conservatives would be likely to have the largest number of seats in May and the party would need to consider how they would play a further role in parliament closer to the time.

He added: “I’m not a soothsayer. But I can safely predict we are going to do a lot better than some of the absurdly pessimistic predictions that have been made about us.”

"Both Labour and the Tories are a threat to our strong economic recovery. The Tories want to cut, cut and cut - not because they have to but because they want to. Labour's addiction to borrowing and debt will risk our recovery.”

A Labour spokeswoman said: “Nick Clegg is the man that made it possible for the Tories to implement the Bedroom Tax, who helped them cut tax for millionaires and who stood by while families in Wales saw their wages and their standard of living fall.

“The first words out of Nick Clegg’s mouth when he arrived in Wales today should have been ‘I’m sorry’.

“The reality is that the Lib Dems didn’t stop the Tories, they facilitated the worst of their policies. Policies that hit people right across Wales.”