PLANS for the Assembly to be given the power to compel private firms to use the Welsh language in their dealings with customers have received a mixed reaction.

The proposals could see the likes of gas and electric providers and phone companies being required to offer full bilingual services.

Assembly Heritage Minister Alun Ffred Jones has said that the new language powers are needed "so that we are better able to secure our goal of creating a truly bilingual Wales".

But business leaders have expressed concerns about added burdens being placed on firms, especially as the credit crunch continues to bite.

The legislative competence order (LCO) published by the Assembly is the first stage in passing a Welsh law. It seeks to give Cardiff Bay greater powers over Welsh language legislation, and would allow the Assembly to extend the scope of the Welsh Language Act 1993 to cover the private as well as the public sectors.

Before the LCO is approved it will have to be scrutinised by both the Assembly and Westminster.

Aberavon MP Hywel Francis, the chairman of the Welsh Affairs Select Committee, has said the proposals will need careful consideration.

He said: "It will be very important for the widest possible consultation to take place within Wales, and my committee looks forward to performing a constructive role in the scrutiny and consultation process."

Stuart Taylor, president of the Swansea- based West Wales Chamber of Commerce, said he thought compelling businesses to use Welsh was not the right approach.

"There are positive business benefits in offering a bilingual customer service, increasing your customer base," he said.

"We would like to see more business done in Welsh. If businesses can be shown examples of the benefits that are available by offering bilingual services they will do it.

"But it should be voluntary rather than compulsory — there are concerns about the extra costs that could be involved, especially at a time when, unfortunately, many firms are seeing a down turn."

Already telecoms giant BT has called for clarification on what the new powers would mean, and has said it would prefer the existing voluntary system to continue.

However, Menna Machreth, chairwoman of Welsh language pressure group Cymdeithas yr Iaith Gymraeg, said that though there were many good points to the LCO, she was disappointed that supermarkets and other large private-sector employers were not included in the proposals.