LIVERPOOL port bosses have already drawn up plans for a £23m upgrade of their cruise facility, the Daily Echo can reveal.
The proposals, which cost £4m more than Southampton’s Ocean Terminal, would pave the way for the city to become a major cruise centre.
Ministers are currently consulting on the city’s controversial bid to cash in on Southampton’s lucrative cruise market.
But with almost two months of the consultation still to go, it has been revealed that Liverpool is already planning the multi-million-pound baggage handling facility – with £10m of public money going towards the plans.
The news has angered the Southampton camp, which believes Liverpool has already been given an unfair advantage by using £21m of public funds to build its cruise terminal.
Romsey and Southampton North MP Caroline Nokes has written to shipping minister Mike Penning to ask why it has not been mentioned in the consultation process so far.
Because of the public subsidy, a restriction was imposed so Liverpool could only be a day stop, rather than launching its own cruises, to avoid an unfair advantage over privately funded Southampton.
Liverpool and its port owner Peel Ports has now asked for this to be lifted – but is offering to pay back just £5.3m of its taxpayerfunded handout.
The redevelopment plans, revealed in meeting minutes from Liverpool City Council, would create a “baggage and passenger handling facility and additional vehicle bridge” at the cruise terminal.
Liverpool City Council would contribute £10m towards the plans, including £6m from this year’s budget.
In a letter to Shipping Minister Mike Penning, Ms Nokes wrote: “The exclusion of this information in the consultation fails to reveal the true scale of the potential threat to businesses in my constituency and those throughout Hampshire.”
She called for an explanation as to how the “serious omission” had come about.
Southampton port director Doug Morrison said any extension to Liverpool’s facility should be funded privately: “Naturally, we are very concerned about this new development since the consultation is still ongoing. It also reveals the true scale of the threat that Liverpool City Council’s and Peel’s plans pose to ports in other parts of the UK and Europe, as well as the damaging knock-on effect to the local and regional economy.”
He added: “The prospect of allowing yet another significant amount of public money to take business away from other ports reinforces our view that Liverpool City Council’s proposal is unfair and, indeed, potentially illegal under EU state aid rules.”
A Liverpool City Council spokesman said including the baggage handling facility was simply “prudent budget planning”, adding: “We can’t do anything until we get the outcome of the consultation.”
The Department for Transport did not confirm whether it was aware of the upgrade plans. A spokesman said: “The department’s consultation is on the specific issue of whether its objection to an existing grant condition should be removed, although respondents to the consultation may wish to express wider views about local authority port funding and operations.
“The City Terminal is owned by Liverpool City Council and, as a general point, it is not surprising that there should be budget provision for works required both for existing operations and on the contingency that turnaround operations may begin there in the near future.
“The Department has in the past published guidance for ports in local authority ownership, and that may be relevant to the financing of such works in future.”
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