Morgan's victory to signal go-it-alone approach to London

Rhodri Morgan's attempt to put "clear red water" between Cardiff and London reaped dividends last night after Labour won back Islwyn from Plaid Cymru in the Welsh Assembly elections.

However, turn-out in the poll projected to be even worse than the 46 per cent of 1999, prompting claims that the Welsh public were dissatisfied with devolution as a whole.

Labour, which has ruled in a coalition with the Liberal Democrats for the past two years, hoped that it would win overall control of the 60-seat assembly.

The party romped home with a majority of 7,000 in Islwyn, its former traditional heartland which was lost to Plaid Cymru four years ago. Neil Kinnock formerly represented the constituency at Westminster.

Early results showed that Labour also held onto Caerphilly, where the resignation of Ron Davies had been expected to give the nationalists a boost.

Labour held onto Aberavon, Vale of Clwyd, Newport East, Newport West, Merthyr Tydfil and Blaenau Gwent. The Liberal Democrats held onto Cardiff Central.

Mr Morgan, the First Minister, had fought a vigorous "made in Wales" campaign, with socialist rather than New Labour policies such as free NHS prescriptions for all and free bus travel for teenagers.

Peter Hain, the Welsh Secretary, predicted that the party was on course to win back Rhondda from Plaid Cymru.

"It's a Welsh Labour agenda and that's what devolution was designed to achieve. It has made a big difference and an overall majority would mean Rhodri is a great campaigner, a great asset to us and the results are a tribute to him."

But Mr Hain expressed his disappointment at projections of the turn-out, with early indications are that the overall voter number could be around 39 per cent. In some seats indications are that turn-out has fallen below 30 per cent.

Speaking on BBC Wales Mr Hain said: "A reasonable turn-out has got to be over 50-60 per cent. We are not going to get a reasonable turn-out."

Even if Labour failed to win an overall majority, former Labour AM Delyth Evans said her colleagues did not want to renew their coalition with the Liberal Democrats.

Speaking on BBC Wales she said: "There's not much appetite within Labour for another coalition."

Former Plaid Cymru leader Dafydd Wigley said a poor turn-out risked undermining the legitimacy of the Assembly.

"It is disappointing but there has been a drop in Scotland as well," he told BBC Wales.

"There have been some factors such as the Iraq war which have cut across the general flow of politics.

"But nonetheless it is worrying and it does to some extent undermine the legitimacy of the Assembly."