Claims made by a Shropshire MP are “unfounded” and patients from Powys are “crucial” to the financial success of the Royal Shrewsbury Hospital, a Mid Wales politician has claimed.

Glyn Davies, prospective Tory parliamentary candidate for Montgomeryshire, has described comments by Shrewsbury MP Daniel Kawczynsk in a Welsh Affairs debate in the Commons, as “insensitive”.

Mr Davies said he was deeply disappointed and troubled by what his “good friend” had said.

Mr Kawczynski last week questioned Wales’s role in health services in Shropshire and said the Royal Shrewsbury Hospital was losing £2 million a year as a result of the way the Assembly paid for treatment across the Welsh border.

Mr Kawczynski also said he loved Wales and spent holidays there last year, but complained that business grants in Wales were tempting English companies to move across the border and this was leading to job losses.

Mr Davies said: “Over recent years I have discussed the cross-border issue with the chief executive of the Royal Shrewsbury on a number of occasions.

“The reality is that Powys patients are crucial to the financial success of the Royal Shrewsbury Hospital, and these sort of insensitive comments seriously undermine the relationship between the hospital and Powys patients.

“For years I’ve worked to maintain access for Montgomeryshire people to hospitals just over the border in England and avoid devolution creating a barrier along Offa’s Dyke. Reading these comments rendered me almost speechless with anger.

“I do not accept that National Assembly grants are uncompetitive and unfair and lead to significant job losses in Shropshire.

“Just imagine what the impact that these insensitive remarks will have had on the workers at Stadco in Llanfyllin, where the company is moving a full order book to its Shrewsbury plant, putting more than 100 people out of work.”

He said he was seeking meetings with the Royal Shrewsbury Hospital and the Mid Wales business development office.

Mr Kawczynski said: “As an MP it is my job to highlight the various concerns affecting my constituents and the Welsh Affairs issues I talked about in the House of Commons are very important issues.

“I am very concerned the Welsh press is trying to over sensationalise what is a major concern in England.”

By Anwen Evans