Llanidloes skateboarders have been told to reduce their bid for funding

Around 30 skateboarders in Llanidloes in Powys, have been trying to set up the park for the last four years.

The group, called Llani skaters, has secured land with planning permission and had also passed the first stage of a Sportlot application to access �52,500 of the �65,000 needed for the scheme.

But now Sportlot says less money is available for the project because of dwindling lottery ticket sales and possible contributions to the 2012 London Olympics if the bid to stage the games is successful.

A Sportlot spokesman said it had to pull in its financial horns in case the UK Olympic bid is successful - �1.5bn of lottery money has been budgeted for if London hosts the games in eight years time.

"Contributions to a successful Olympic bid will have to be made by us, the Arts Council and the New Opportunities Fund so we have to budget for that eventuality.

"Nevertheless, the main reason why our schemes will be cut back is because of an ongoing decline in income because less lottery tickets are being sold."

Llani skaters' secretary Aileen Jones: "I was very upset when we were told by a Sportlot officer that we would have to ask for less money from them because of the Olympic bid."

Contributions to a successful Olympic bid will have to be made by us, the Arts Council and the New Opportunities Fund so we have to budget for that eventuality Sportlot spokesman

"The government keeps telling youngsters to get more exercise and stop watching TV and playing with computers.

"These youngsters in Llanidloes want to get out there to have exercise on the skateboards but now they are told there is no money to apply for the facility."

Mrs Jones said Llani skaters had been told to reduce their original Sportlot bid from �52,500 to �30,000.

"It will be very difficult to raise the �20,000 extra we will now have to find, especially because Powys Council is finding money tight at the moment."

London's bid to host the 2012 Olympics was launched in January with bookmakers making the city second favourites behind Paris.

If it is successful, London will stage some of the events in Wales at venues including Cardiff's Millennium Stadium and the new velodrome in Newport.

Meanwhile, Llanidloes town councillors are to set up a meeting between themselves, Llani Skaters and Powys Council to see how much financial help the local authority could provide to try to save the skateboard project.