Cardiff Bay is one of Wales' biggest regeneration success stories

Jeremy Colman's report states that Wales' 22 councils have problems gaining access to funding and in making complex partnerships work.

It claims that better organisation is needed urgently.

The Welsh Assembly Government said regeneration was a top priority and changes had been made to its systems.

'Complex and cumbersome'

The report by the Auditor general, Jeremy Colman, is the result of two years work into how public bodies create jobs in deprived areas and improve living conditions.

But it says the current approach is too cumbersome with outcomes not being properly monitored so it is difficult to tell if projects have delivered on their promises.

The report was compiled from research by the Wales Audit Office, which consulted the 22 councils, the Welsh Assembly Government, the Welsh Local Government Association, the Welsh Development Agency and focus groups.

It also reviewed a number of regeneration projects and analysed local documentation about regeneration work.

Holyhead town centre is to receive a �2.5m facelift

In his report, Mr Colman called current regeneration networks "complex, cumbersome, with too many partnership arrangements, funding steams and regimes arising from Welsh Assembly Government initiatives".

He added: "The approach must be simplified.

"There is an urgent need for better coordinated and simpler frameworks at national and local level."

'High priority'

Mr Colman also said local authorities were hindered when it came to longer-term planning because funding was generally short-term.

He recommended councils should develop 10-year local regeneration strategies, the assembly government should simplify funding and make it more long-term and it should also be more coordinated in its regeneration priorities.

�300m is being spent on improving the Heads of the Valleys trunk road

A spokesman for the assembly government said regeneration was one of its highest priorities and required "co-ordinated action from all parts of government and its partners in the private and voluntary sectors".

He highlighted the �300m Heads of the Valleys road improvement programme was a prime example of how coordination in planning and regeneration had been developed.

"These developments have been put in place since the research was undertaken for the Wales Audit Office report," he said.

"We welcome the contribution by the Wales Audit Office in advising on what is working well and what is working less well across local government and the whole public sector in Wales.