Minister urged to protect city’s vital cruise industry (From Daily Echo)

Minister Paul Clark urged to protest Southampton from Liverpool's cruise move

4:27pm Monday 5th October 2009 in News By Matt Smith, Politics and business reporter

EURO MPs have pleaded with the ports minister not to let Liverpool use European Union cash to grab a slice of Southampton’s lucrative cruise industry.

Liverpool’s bid to upgrade use of its EU-funded cruise liner terminal has been blasted by regional MEPs who have backed Southampton’s objections and warn it would set anti-competition alarm bells ringing in Brussels.

Labour’s south east MEP Peter Skinner has held face-to-face talks with transport minister Paul Clark to lay down the risk to jobs and business on the south coast should he give Merseyside the green light to use its £19m taxpayer funded terminal to start and end cruise voyages.

The Pier Head terminal, built with a £8.6m grant from the European Union (EU), is currently a stopping off port.

Mr Skinner said: “Associated British Ports have invested private capital of tens of millions of pounds in investment for the turnaround cruise market whereas Liverpool has been given substantial grant aid from the European Development Fund which will sound alarm bells in the European Parliament regarding anti-competitive funding.

“I would like to send a clear message to Southampton port’s workforce in that they have my support in protecting jobs and investment in Southampton.”

Tory Hampshire MEP Daniel Hannan said: “EU money should never have been allocated to Liverpool’s Pier Head in the first place. He said would be “outrageous”

for the Department for Transport to relax competition rules to allow Liverpool to upgrade its cruise terminal.

“ABP did not invest its own money in Southampton’s port in order to create one of the most successful turnaround terminals in the country, only to be thrown into competition with a port bolstered by taxpayers'

money.

“Once again the EU has intervened in the domestic marketplace at our expense.”

UKIP leader and south east MEP Nigel Farage, has planned talks with Southampton port bosses this week.

“I have been deeply sceptical about the use of our money through European funding as it will always inevitably disadvantage areas like the south east which are comparably prosperous compared to the north.

“In the end it’s taxpayers in the south east that are the biggest contributors and appear to be getting a raw deal.”

Conservative south east MEP Richard Ashworth, who sits on the European Parliament’s powerful budget committee, also voiced concerns.

He said it was vital European funding intended to improve transport infrastructure did not upset “free and fair competition.”

Mr Ashworth said he would be arranging a meeting with ABP and would be prepared to demand answers from the European Commission, which is ultimately responsible for handing out the cash. He said EU grant funding could be clawed back from Liverpool if use of its cruise liner terminal was found to breach the terms of its finance deal.