THE European Commission has been urged to intervene in a port row which could see Tyneside jobs put at risk.
Liverpool port bosses are trying to overturn a state aid rule which says that because they received around £21m in taxpayers cash to build a new terminal they should be restricted from taking cruises away from sites such as the North East.
If they succeed in putting pressure on the Government it could mean fewer visitors heading to Tyneside to set off on cruise trips, an industry worth around £33m a year and underpinning some 1,400 jobs in the region.
A campaign to reverse restrictions on the number of cruise ships allowed to use Merseyside facilities is under way in Liverpool, with speculation mounting that the coalition Government may undo a previous decision ministers made to keep in place the shipping rules.
But because some £9m worth of the cruise terminal investment came for European funds any change would need to satisfy their top spending chiefs. Conservative North East MEP Martin Callanan has leant his support to a united effort by Euro politicians to ensure Liverpool is not handed an unfair advantage.
In a letter to Pawel Samecki, the Commissioner behind regional aid, Mr Callanan highlighted concerns about the “potential misuse” of European cash. Mr Callanan, leader of the Conservative Party in Europe, said: “The use of the grant was conditional upon the terminal being used by cruise ships for day visits in order to prevent unfair competition.
“If these conditions were lifted then the principal beneficiary would be the private owner and operator of the Port of Liverpool, Peel Ports, who would gain an unfair commercial advantage.” The letter, signed by several MEPs, adds that the result of such a move would be job losses nationwide. Mr Callanan says he intends to raise the issue again following the renewed Liverpool rule change bid.
When Peel Ports and Liverpool Council tried in 2009 to over turn the restrictions the Government ruled it would be “unfair” to other ports. The Government has said it is looking into Liverpool’s request.
