Fears emerge over plans for Gateshead conference centre

Dec 14 2009 By Adrian Pearson, The Journal

FUNDING fears have emerged over plans to create an £80m conference centre in Gateshead.

City leaders have spent the last six months preparing the case for building a conference centre on land near the Sage, which should create 2,000 jobs.

But with work due to start in 2011 the cash needed to build the centre is far from guaranteed.

The conference centre and further redevelopment of Gateshead Quays form a large part of the joint economic masterplan for the two sides of the River Tyne.

But whereas Newcastle has secured millions of pounds for a Science City headquarters and other flagship schemes, planners south of the river are still in talks to see if recession-hit businesses can help them out.

To maker matters worse, council bosses in Gateshead announced last month they face a budget shortfall of anywhere up to £70m as they face up to a cut in Government cash.

Chief executive Roger Kelly told councillors at the borough’s full council meeting that "we are going to have to make some tough decisions". His warnings comes as councillors look for £80m in public sector handouts for a conference centre while finalising plans to make hundreds redundant to save money.

Mr Kelly added that many council services could be contracted out to voluntary and private sector to save money.

He also admitted working with development agency One North East and other agencies as he tries to draw down funding – cash which is increasingly being earmarked for redundancy help.

Liberal Democrat councillor Jonathan Wallace said that while he supported plans to build the centre and "bring people into the area who would not normally come here" questions had to be asked about what funding was in place.

"My main concern is that we appear to be just at an aspirational stage and we need to know how we will get past that.

"Given the current economic circumstances where is the funding going to come from?"

Mr Kelly said: "There is a substantial fund from the RDA (One North East) and other agencies and money from ourselves. There is a gap and it is being worked on. At the moment we are looking at sponsorship, private sector involvement. That’s a bit difficult at the moment but the gap in my opinion is manageable.

"I think we will be in a position by March to see if we are definitely getting it, I would say at the moment it is likely."

But One North East deputy chief executive Malcolm Page last night warned there was no easy money available.

"Work is ongoing with 1NG and local authorities to investigate the market potential of a conference centre in the North East and the opportunities it may afford.

"However, funding for any project would have to come from a range of partners in what is an increasingly challenging financial environment.

"Current economic conditions remain extremely challenging and our resources will continue to be focused on helping our businesses through the recession and preparing for the upturn."

Mark Robinson, project director at the city development company, tasked with building the centre, said it was working closely with public sector partners on a masterplan for Gateshead Quays.

"A team is being procured and will be appointed in the New Year to undertake this work. Funding for the feasibility and design work has been secured by Gateshead Council and One North East and the work is progressing well."