LIVERPOOL port bosses have been told they will be forced to repay millions of pounds of taxpayers’ cash before they can bid to take cruise business away from the likes of Tyneside.
Shipping minister Mike Penning has told The Journal the £21m handed to Liverpool to build a cruise terminal opened in 2010 will have to be paid back if the city wants to get around strict state aid criteria.
Council bosses in Merseyside have so far offered to repay some, but not all of the money. The terminal is only able to take visiting ships, rather than have cruises start or end their journey in Liverpool.
This condition was placed on the development grant, which includes European Commission funding, in order to offset worries Liverpool would take trade away from the likes of Port of Tyne and Southampton.
Tyneside’s cruise-related tourism industry contributes an estimated £33m per annum to the local economy and supports 1,200 local jobs.
Asked if it was fair these are put at risk, Mr Penning said: “Like anything you have a consultation and listen to the evidence given. Once we have looked at this a decision will be made.
“Liverpool took taxpayers’ money as part of the original agreement and Liverpool will have to pay that back otherwise permission will not be granted.
“Now there are other issues. That money was decided a while ago and there was offset against other things. But at the end of the day, Liverpool have been told: ‘I am not just going to say yes, you can have this opened’. They have to address the issue of the finances they took with contractual obligations not to have a cruise terminal there and have turnaround only.”
Asked about Liverpool’s plan to repay some investment but not all, he said: “I’m not responsible for European finances, that is an issue for the Commission, I’m responsible for state aid. I have not made a decision on this but there will be a statement to the House when I am ready.”
North East Conservative MEP Martin Callanan has repeatedly pushed for money to be repaid, not just the £5m in EU funds, if the rules are changed.
He said: “I have argued all along that all of the public money should be re-paid before the Liverpool Cruise Terminal can be used for turnaround calls. We should never forget this was an agreement which they happily entered into. It is right they should honour that agreement. This is the only fair solution and it is welcome the minister appears to recognise that. However, this will only be a fair outcome if the Government does not lift the restriction until all of the public money from both the UK Government and EU has been re-paid. The UK Government has an obligation to ensure it does not grant any illegal state aid, regardless of funds. There would be no legal basis for the Government to lift the turnaround restriction without first requiring the repayment of the UK national grants and the European Regional Development Fund grant that was allocated to Liverpool by the UK authorities.”
