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CABINET minister Chris Huhne has waded into the row over controversial plans from Merseyside that could damage the region’s economy.

The Energy Secretary has publicly opposed demands by Liverpool to compete as a cruise port without paying back the full amount of state subsidies given, on condition that cruises did not start or end in Liverpool.

Liverpool Council has forced through a Government consultation on allowing it to repay £5m of the £21m in public funds agreed for a cruise terminal on the basis that it would only be a visitor port. The move has sparked warnings that Tyneside and Southampton would be unfairly affected by loss of trade as a result.

Mr Huhne, who represents the Eastleigh constituency near Southampton, said: “I believe it would be a big mistake to let Liverpool keep a substantial part of its state aids if it is going to compete head-on with Southampton Port which has had to find all its investment from private sources.” The Liberal Democrat added: “Liverpool should either keep the restrictions, or the multi-billion pound Peel Ports that run Liverpool should stump up to re-pay the state aid in full.

“Any other course of action will undermine investor confidence, tilt the playing field unfairly, and put up an obstacle to a stronger economic recovery.”